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

Malaysia’s Penang Port targets 1.35M TEUs in 2016

Penang Port in Malaysia aims to handle 1.35 million twenty foot equivalent units (TEUs) of containers in 2016. Port manager Penang Port Sdn Bhd…

OECD economies’ growth sputters in first quarter

Growth of real gross domestic product (GDP) in the Organization for Economic Cooperation and Development (OECD) slowed to 0.3% in the first quarter of 2015,…

Zim’s net loss balloons to $163 M in 1st quarter

Zim Integrated Shipping Services was hit with an even bigger net loss of US$163 million in the first quarter of 2012 compared to net…

Air cargo experiences first decline since March 2016; China to US volume down

For the first time in two-and-a-half years, worldwide air cargo volume posted negative growth year-on-year, contracting 0.9% in September compared to last year, according…