World News
Hapag-Lloyd Returns to Profit as Fuel Prices Drop
Hapag-Lloyd AG (Hapag-Lloyd) reports it returned to profitability in the second quarter of the year, with a net result of €20.9 million ($27.9 million) after losing €7.3 million ($9.7 million) in Q2 2012 as revenues fell slightly to €1.8 billion ($2.4 billion) from €1.7 billion ($2.2 billion).
The company said a slight drop in bunker prices, along with cost cutting efforts, helped its bottom line.
The price the company paid for bunkers dropped to an average of $622 per tonne for the quarter, down from $694 per tonnne year-over-year, although Hapag-Lloyd noted that the price is still more than three times where it stood at the start of 2009.
The company has said its 2012 results were hurt by rising bunker prices.
Hapag-Lloyd said "intense competition" made it "almost impossible" to increase rates, leading to a drop in its freight rate to $1,499 per twenty-foot equivalent unit (TEU), down from $1,594 per TEU last year, but transport volume rose 2.3 percent to 1.39 million TEU.
"Rate increases are indispensable in order for liner shipping companies to return to a sound earnings situation," said Michael Behrendt, chairman of the Executive Board.
"While we managed to implement small rate increases at the start of July, it is still not enough.
"Further rate increases have been announced."
The company said it is "striving" for a positive operating result for the full year.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 502.00 | 4.50 | 617.00 | 5.50 |
| Rotterdam | 457.50 | 2.50 | 623.50 | 6.50 |
| Houston | 469.00 | 3.50 | 623.00 | 2.00 |
| Fujairah | 494.50 | 6.50 | 715.50 | 5.50 |
| Global 20 Ports Average | 526.00 | 3.00 | 712.50 | 11.50 |
| Global 4 Ports Average | 481.00 | 4.00 | 645.00 | 4.50 |
| Global Average Bunker Price | 569.00 | 2.00 | 750.00 | 5.50 |
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