Hapag-Lloyd registered a net loss of US$9 million (EUR7.3 million) in the second quarter of the year, a better performance from its $13.1 million (EUR10.6 million) net loss for the same period a year ago.

The Hamburg-based ocean carrier said higher freight rates failed to offset rising fuel costs, its biggest expense.

But operating profit rose 18 percent to $38.2 million from April to June, and revenue also increased, up 21 percent to $2.2 billion.

The German box ship said that while shipping lines have hiked their freight rates, the increases were not enough to counter the rising energy prices, adding that further rate increases were “unavoidable.”

“High bunker prices in particular cause our expenses to increase dramatically—they are by far the biggest cost factor for our business,” said Michael Behrendt, chief executive officer. “Further rate increases are crucial to compensate for these elevated external costs.”

For the first half of the year, the company managed to raise its revenue to $4.2 billion from $3.7 billion in 2011, but it suffered a net loss of $173.2 million from $40.5 million due to high bunker and energy prices.

The Hamburg-based carrier said it “is striving to post positive operating earnings again for the current financial year, provided that there is no fundamental escalation of the risks and assuming it proves possible to implement further rate increases in the course of 2012.”

 

Photo courtesy of Hapag-Lloyd

You May Also Like

PH plans yearend NSW linkup with ASEAN Single Window

After five years, the Philippines is expected to finally connect to the Association of Southeast Asian Nations (ASEAN) Single Window by December this year,…

APL posts 94 percent on-time record in trans-Pacific

Container shipping line APL said its on-time performance in the trans-Pacific trade was 94 percent for the first half of 2011. In its midyear…

Cathay, Lufthansa expand cargo network cooperation

Hong Kong-based Cathay Pacific’s cargo division and German carrier Lufthansa Cargo have expanded their joint business agreement (JBA) to enable the start of eastbound…

15 additional berths eyed for Korea’s Busan port

South Korea has announced ambitious expansion plans for Busan Port that will raise the box-handling capacity of the country’s maritime gateway by a wide…