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Hapag-Lloyd reports rise in revenue
The carrier's transport volume rose by 27%

Hapag-Lloyd reports rise in revenue

Hapag-Lloyd has reported a 23% year-on-year rise in its revenue in the first nine months of 2018.

The German carrier’s revenue went up from US$8bn in the months from January to September last year to US$10bn in the same period this year.

The increase was primarily due to a 27% rise in transport volume from 7m teu in the first nine months of 2017 to 8.9m teu in the same period of 2018.

According to the company, the increase in transport volume was mainly the result of Hapag-Lloyd’s merger with United Arab Shipping Company Ltd. (UASC) in May 2017.

The average freight rate fell to 1,032 €/teu (1,170 US$/teu) in the first nine months of 2018, from 1,068 €/teu (1,211 US$/teu) in the same period last year.

“On a pro forma basis and when compared to the combined business of Hapag-Lloyd and UASC in the nine-month period, the transport volume is up 5.5% and the average freight rate is up 1.4%,” a company statement noted.

The carrier’s higher earnings before interest and taxes (EBIT) were up 20% year-on-year, from US$300m in the first nine months of 2017 to US$359.4m in the same period this year.

The group net result increased by 69% year-on-year to US$14.9m in the months from January to September 2018.

Hapag-Lloyd’s CEO Rolf Habben Jansen said: “Higher transport volumes, a better utilisation of our ships and the synergies from the recent merger with UASC have enabled us to partially offset rising operational costs. In addition, the average freight rate improved during the peak season in important trades.

“Despite the persistent upwards pressure on the operational costs in various parts of our business, we remain cautiously optimistic for the rest of the year.”