High Demand & Rigorous Costs Help Hapag-Lloyd Upgrade Q3 Profits

  • Performance of container shipping market and Hapag-Lloyd in Q3 much better than anticipated.
  • Compared to Q2 much stronger demand and higher revenues in Q3.
  • Performance Safeguarding Program running successfully.

According to a recent Hapag-Lloyd press release published in its website, Hapag-Lloyd updates forecast for financial year 2020.

Hapag-Lloyd’s earnings increase

On the basis of preliminary figures, Hapag-Lloyd’s earnings before interest and taxes (EBIT) for the third quarter 2020...


Ocean rates still rising alongside ‘major problems’ for those on the front line

Today’s Shanghai Containerized Freight Index (SCFI) shows a further 10.65-point gain in its comprehensive index to 1,448.87 – 71% higher than at the end of May.
The huge increase over the past five months, in the midst of the pandemic, has been driven by substantial gains in container spot rates across both main and secondary tradelanes.
For example, on the secondary routes of Asia to Australasia, Asia to South Africa and Asia …

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Shipper anger as THE Alliance adjusts November schedules on higher rates

Confidence is being “eroded” and the relationship between the shipping lines and their customers is becoming increasingly strained according to the European Shippers’ Council (ESC) as lines announce more vessel cancellations and rising rates.

THE Alliance, a shipping alliance composed of Hapag-Lloyd, ONE, Yang Ming and HMM, has announced its November service adjustments, including void sailings following the German carriers’ announcement on 15 October that it would raise rates.



Significant earnings jump spurs Hapag-Lloyd forecast revision

Hapag-Lloyd has raised its full-year forecast based on preliminary third-quarter figures showing a year-over-year earnings jump of €96 million ($112 million). 

Hapag-Lloyd, the world’s fifth-largest container carrier, said in an announcement Thursday that “due to the positive development in Q3,” it was raising its 2020 earnings before interest and taxes (EBIT) forecast to between €1.1 billion and €1.3 billion ($1.28 billion to $1.52 billion) and earnings before interest, taxes, depreciation and...


CMA CGM and MSC complete TradeLens integration

Global container carriers CMA CGM and MSC Mediterranean Shipping Company announced Thursday they are now fully integrated onto the TradeLens blockchain-enabled shipping platform.

The digital platform, which is designed to help ensure a more fully integrated, timely and consistent view of logistics data for containerized freight around the world, is run on the IBM Cloud and IBM Blockchain

TradeLens was jointly developed by IBM and A.P. Møller – Maersk and launched as a beta product in August...


Hapag-Lloyd upgrades 2020 profit forecast 28% after a bumper Q3

Hapag-Lloyd has upgraded its full-year earnings guidance by 28% after unaudited third-quarter results came in 17% higher.
The carrier said it now expected a 2020 ebitda of €2.4bn-€2.6bn, up from its previous guidance of €1.7bn-€2.2bn, and follows a preliminary Q3 ebitda of €650m.
“We have experienced a strong third quarter with a high demand, especially for exports out of Asia,” said chief executive Rolf Habben Jansen.
“Volumes were 3% below the previous year, …

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Carriers apply widespread rate rises, but delay US increases

Shipping lines have pushed up their rates again across the world with three out of the five largest container shipping companies announcing a number of increases on a variety of trade routes.

But notably, Hapag-Lloyd has postponed its US rate rise, which was subject to Federal Maritime Authority scrutiny, to November.

The German carrier has rescheduled the 15 October GRI from East Asia to the US and Canada, with the exception of all Japan origin cargo.

The new effective date of the this GRI,...


M&A radar: Waiting for a PIL deal, Santa comes early for CMA CGM, Hapag & Zim

It’s not an epic fantasy trilogy but reality now, as two carriers’ celebrations that started last week enlarged to include a new cheerful member, Israel’s Zim, switching to full binge mode in the past 48 hours.
Now read this (emphasis in bold added):
“CMA CGM is taking advantage of strong shipping markets to sell €525m of new bonds to replace existing bond debt which falls due on 15 January next year. The new …

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Ocean carriers on a high and ‘surfing a wave’ of profitability

Ocean carriers are “taking advantage of the moment”, according to Alphaliner, boosting their balance sheets on the back of booming demand and all-time high spot rates.
Carriers are “surfing a wave”, said the consultant, but added that mid-term visibility was low and global growth predictions for next year and beyond were shrouded in uncertainty.
Alphaliner said 2020 would be remembered as “one of the strangest years” for container shipping, with carriers issuing …

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