EMEA News
Hapag-Lloyd Reports "Disappointing" 2013 Results
Hapag-Lloyd AG (Hapag-Lloyd) reports "disappointing" results in 2013 with low freight rates, as it prepares to acquire the container shipping operations of Chile's Compania Sud Americana de Vapores SA (CSAV).
"A takeover of CSAV's container business would lift Hapag-Lloyd from being the sixth to the fourth-largest liner shipping company in the world, bringing us within striking distance of the three largest shipping companies," said Michael Behrendt, chairman of the executive board for the German carrier.
In 2013, Hapag-Lloyd's average freight rate was down by more than 6 percent from its 2012 level to $1,482 per twenty-foot equivalent unit (TEU).
"This is insufficient in view of the persistently high fuel costs and is completely unsatisfactory," Behrendt said.
The company's revenues declined by 4 percent to €6.6 billion ($9.1 billion), but it reduced its losses by 34 percent to €97.4 million ($134.1 million) as expenses fell.
The company reports saving $285 million compared with the previous year through cost-cutting measures.
Behrendt said Hapag-Lloyd anticipates a better economic situation in 2014 and 2015, which he said should raise container volumes and push freight rates up.
Hapag-Lloyd said it is now carrying out due diligence on taking over CSAV's container activities after signing a non-binding memorandum of understanding with the Chilean company in January.
Hapag-Lloyd had previously discussed a possible merger with Hamburg Südamerikanische Dampfschifffahrts-Gesellschaft KG (Hamburg Süd) early last year, but those plans were called off.
