EMEA News
Hapag-Lloyd Looks to Further Ship Investment, Says Demand for Box Shipping Services Will Continue to Rise
Hapag-Lloyd AG says it is eyeing further vessel investment as demand for box shipping will continue to rise.
Commenting in its recent Q1 2015 financial report, the German shipper said its liquidity reserve of more than EUR 1 billion ($1.14 billion) meant it was "well financed for the future."
"With demand for container shipping services continuing to rise, container shipping will remain a growth industry in the long term," the shipper said.
"Hapag-Lloyd will further invest in new ship systems in the future in order to utilise the medium-term expansion opportunities resulting from market growth and to realise economies of scale in its ship operations."
However the firm also noted the growth in the global container ship fleet's transport capacity is expected to be lower than the projected nominal increase, as older and less efficient tonnage is scrapped but the delivery of newbuilds is postponed in the face of continued slow steaming practices.
"Although the prospects for growth remain positive in the medium term, there may be temporary imbalances in supply and demand, which could have a substantial impact on the respective transport volumes and freight rates," Hapag-Lloyd warned.
Hapag-Lloyd said it got off to "a solid start to the year" posting a Q1 2015 profit of EUR 126.2 million ($146.2 million).
