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

NOL reports $67 million loss in first half of 2011

Neptune Orient Lines (NOL) has reported a net loss of US$67 million for the first half of 2011, after registering a $1 million in…

Chelsea subsidiary partners with Japanese firm for fleet upgrade

Kumiai Senpaku Co. Ltd., one of the largest independent shipping companies in Japan, has agreed to finance the construction and acquisition of a passenger…

DOTr logistics plan eyes PH infra upgrade, ASEAN linkages

The Department of Transportation (DOTr) has identified several infrastructure projects and policy plans leading to the creation of a seamless multimodal transport system nationwide…

Air passenger volume grows but remains below trend, says IATA

Global passenger demand showed a slight pickup in August 2019 year-on-year, but growth remains below the long-term trend, according to the latest data released…