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Hapag-Lloyd Q1 net loss deepens – but rate increases set to boost future results

Fri 12 May 2017 by Rebecca Moore

Hapag-Lloyd Q1 net loss deepens – but rate increases set to boost future results
Hapag-Lloyd posts deeper nets loss for Q1 this year

Hapag-Lloyd’s Q1 net loss has plunged to €62.1 million from a €42.8 million loss in the same period last year – but successful rate increases have been launched which will have an impact on the company’s results later in the year.

And the carrier did finish the first three months with a positive operating result, in spite of higher bunker prices. The transport volume increased by 6.8 per cent year-on-year to more than 1.9 million teu. The greater transport volume and exchange rate effects pushed revenue up by 10.4 per cent to €2.13 billion.

Hapag-Lloyd said in a statement that “rate increases were successfully introduced in a number of trades even though the industry environment remains challenging, but these rate increases are only going to have an impact on the company’s result later in the year”. Meanwhile, the Q1 result was “noticeably” affected by ongoing bunker price increases. At US$313/tonne, the average bunker price was above the previous year’s figure of US$197 tonne and is at the highest level seen since June 2015.

“Our activities in Q1 focused on preparations for the merger with UASC and on the launch of our new alliance. The launch of the THE Alliance went well, and the merger with UASC will be closed shortly,” said Rolf Habben Jansen, chief executive of Hapag-Lloyd. “After the closing our priority will be to integrate UASC into Hapag-Lloyd quickly and to realise initial synergies from the merger.”