HAMBURG: Hamburg-based shipping company Hapag-Lloyd expects rough seas in global container transport to continue in the coming quarters, following a slump in profits this year, reported dpa news.
Subdued demand, more shipping capacity, and price pressure are expected, according to a presentation by CEO Rolf Habben Jansen on Thursday. The industry’s capacity will exceed demand by 2024, which will make “active cost management” unavoidable, he said.
Hapag-Lloyd put the average price for the first nine months of the year at US$1,604 (€1,472) per 20-foot standard container (TEU) - compared with US$2,938 (€2,696) a year earlier. Freight rates fell more sharply than had been expected due to the supply/demand ratio.
The lower prices for sea transport compared to the coronavirus-related boom caused Hapag-Lloyd’s revenue and profit to plummet in the first nine months of this year. The Group’s result fell to around €3.16 billion. In the record year 2022, it totalled €13.77 billion after nine months.–Bernama-dpa
