Wednesday, December 16, 2009

Container Shipping Line To Post Expected Near Billion Dollar Loss

Hapag-Lloyd Figures Look as Bad as Expected
Shipping News Feature

GERMANY – With the publication of their financial results yesterday shipping and travel group TUI confirmed the anticipated losses of Hapag-Lloyd AG, whom they part own. As predicted the figures revealed show a potential loss of almost $1 billion for the container shipping group in the revised fiscal period which had been shortened to nine months to align all TUI company year ends.

Although TUI recorded a creditable performance the Hapag results reduced down their profits accordingly. Revenues from container operations are down 28% to less than $5 billion from last years $6.7 billion, due to reduced TEU volumes, and the consequence of freight rate reductions seen throughout the market as competitors slug it out for business, exacerbating the situation.

TUI reduced its holding in the carrier when it sold off almost 57% of the company to the Albert Ballin consortium back in April. This gave the travel group around $1.6 billion to boost their figures. Hapag have also turned to the state for assistance through the difficult period.For a detailed chronology of Hapag finances this year simply type the name into the News Search box.