Hapag-Lloyd has reported a net loss of $38.3 million in 2011, following a $565 million profit in 2010, IFW reports.
However the German container line’s $133.3 million operating profit bucked industry trends by not matching the sizeable losses reported by the majority of ocean carriers.
Hapag-Lloyd CEO Michael Behrendt said: “In comparison with the competition, this was an excellent result in a challenging year.”
He added: “Not only were we the only large liner shipping company to achieve a positive operating result in all four quarters of 2011, but we were also the only market participant to close the second half of the year with a group profit, after interest and taxes.”
The world’s fourth largest carrier had reported that revenues slipped to $8 billion from $8.2 billion in 2010, largely because of exchange rate fluctuations.
Volume grew 5.1% to 5.2 million teu, while the average freight rate declined 2.4% to $1,532 per teu.
A 34% surge in average bunker prices to $655 per tonne “severely depressed” earnings, the Hamburg-based carrier said. The additional $600 million spend could not be passed on to customers “as some market players resorted to aggressive pricing in 2011 in order to gain market share”.
Behrendt said the market had accepted the sharp increases in freight rates this month, with more to follow in April.
He added: “These increases are unavoidable in order to get back to adequate and sustainable rates, especially as the bunker price has gone up even further.”
Hapag-Lloyd CEO Michael Behrendt said: “In comparison with the competition, this was an excellent result in a challenging year.”
He added: “Not only were we the only large liner shipping company to achieve a positive operating result in all four quarters of 2011, but we were also the only market participant to close the second half of the year with a group profit, after interest and taxes.”
The world’s fourth largest carrier had reported that revenues slipped to $8 billion from $8.2 billion in 2010, largely because of exchange rate fluctuations.
Volume grew 5.1% to 5.2 million teu, while the average freight rate declined 2.4% to $1,532 per teu.
A 34% surge in average bunker prices to $655 per tonne “severely depressed” earnings, the Hamburg-based carrier said. The additional $600 million spend could not be passed on to customers “as some market players resorted to aggressive pricing in 2011 in order to gain market share”.
Behrendt said the market had accepted the sharp increases in freight rates this month, with more to follow in April.
He added: “These increases are unavoidable in order to get back to adequate and sustainable rates, especially as the bunker price has gone up even further.”