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.