Hapag Lloyd records growth in transport volumes in the first half

Hamburg, August 13, 2014 (STAT):-Hapag-Lloyd increased its transport volume in the first half of 2014 in difficult circumstances. Despite the increase in transport volumes, the revenue for the first half declined to EUR 3.21 billion due to the poor freight rate.

As far as costs are concerned, Hapag-Lloyd reduced its transport expenses by EUR 79 million year on year to just under EUR 2.9 billion in the first half-year – despite the sizeable increase in transport volume. Overall, transport expenses per TEU averaged at USD 1,372 in the first half of 2014 – USD 57 per TEU less than the prior year period.

Even with reduced transport expenses, it was impossible to make up for the massive impact that falling freight rates had on earnings. In the first half of 2014, Hapag-Lloyd achieved an EBITDA of EUR 67.2 million (prior year period: EUR 171.8 million) and an operating result of EUR -73.7 million (prior year period: EUR 13.5 million). The Group net result of EUR -173.3 million (prior year period: EUR -72.7 million) includes one-off costs relating to the CSAV transaction.

‘The fact that we ended up with this unsatisfactory result despite clear efforts to cut costs is down to the disappointing development of freight rates across all trades’, said Rolf Habben Jansen, CEO of Hapag-Lloyd. ‘We expect, however, to see a better result in the second half of the year even though the environment remains tough. We’ll continue to cut costs and our merger with CSAV will enable us to realize synergies worth at least USD 300 million per annum in the future’, he added.