Hapag-Lloyd cuts financial outlook

Hapag-Lloyd cuts financial outlook

German containerline Hapag-Lloyd has revised downwards its predictions for the current financial year citing “weaker than expected” freight rates.

In the second quarter of 2016 the average freight rate of Hapag-Lloyd decreased to $1,019 per teu, $245 less than in the same quarter of 2015.

“The recovery at the beginning of July does not seem sufficient and sustainable enough,” the Hamburg-headquarter line said.

Additionally bunker prices have increased throughout the second quarter of 2016.

One-off related costs linked to the potential merger of United Arab Shipping Company (UASC) will also impact this year’s results, expected later this year.

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.

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