Hapag-Lloyd generated a profit in Q1, 2015, and concluded the first quarter with a profit of more than US$ 146 million, in comparison to the same period in 2014 where it incurred a massive loss of more than $136 million.
PTI previously reported that Hapag-Lloyd has placed an order for five 10,500 ships which is intended to coincide with the on-going expansion of the Panama Canal, which is due to be completed in early 2016.
The sharp increase in profit was achieved in a challenging market environment, with an average freight rate in the first quarter of $1,331 per TEU. This is down $91 per TEU year-on-year, but the drop in the average freight rate is largely a result of the consolidation of CSAV’s container business, which had a lower average freight rate than Hapag-Lloyd.
Rolf Habben Jansen, CEO of Hapag-Lloyd AG, said: “This is a solid start to the year, in spite of the continued price pressure in many of the trades. This quarter we had support from favourable bunker price and a stronger US dollar, but most importantly this is due to the hard work of all Hapag-Lloyd employees.
“The results include first synergies from the merger with CSAV’s container business and initial savings from our comprehensive efficiency programme.”
With an equity ratio of around 42% as of March 31, 2015, Hapag-Lloyd has a strong balance sheet structure; and with a liquidity reserve of more than $1.1 billion, the company is well financed for the future.
(Source: Nieuws Blat Transport)
