• Home
  • News
  • Hamburg Süd turnover up by 16.8 percent to 6,058 million euros in 2015
  • 2016 April 20 18:07

    Hamburg Süd turnover up by 16.8 percent to 6,058 million euros in 2015

    The Hamburg Süd Group succeeded in significantly increasing its total turnover by 16.8 percent to 6,058 million euros, the company said in its press release. The main drivers were the successful takeover and integration of the container operations of the Chilean shipping company Compañía Chilena de Navegación Interoceánica S.A. (CCNI) in late March 2015 as well as the entry into the East–West trade lanes.

    Shipment volume in the liner business rose sharply on the previous year, by 21.5 percent to 4.101 million TEU (1 TEU = 20' standard container). Despite the weakness of the South American economies (especially Brazil, Argentina, and Venezuela), this made it possible to meet the volume growth planned for the reporting year. A fleet capacity of 625,000 TEU (+16 percent year on year) propelled the Hamburg Süd Group into the ranks of the ten largest container shipping lines worldwide for the first time.

    Due to global overcapacity, freight rates declined by roughly 16 percent. The resulting loss of revenue could only partially be offset in the liner division by falling fuel prices, and restrictive capacity and cost management. The result in this sector failed to meet expectations and must be described as less than satisfactory.

    Bulk shipping was also characterized by very difficult market conditions. Due chiefly to China’s lower raw material imports, demand for shipping space remained static while global fleet growth rose once again on the previous year. As a result, the revenue generated fell sharply. Bulk shipping fell well short of the result planned for the reporting period. Only the product tanker segment achieved a satisfactory result. Capital spending totaled 437 million euros, putting it above the level of the previous year. The number of employees increased to 5,960 on an annual average due to growth.

    At 3.1 percent, global economic growth in 2015 was slightly below that of the previous year. Containerized sea transport, by contrast, at +1 percent, grew scarcely at all on a global level in the past fiscal year (2014: +5.2 percent). It can be assumed that the international division of labor is no longer rising and the containerization of general cargo is largely complete. With a capacity totaling 1.7 million TEU (+8.5 percent), by contrast, worldwide deliveries of container ship newbuilds – especially large container vessels – reached an all-time high in the past fiscal year. As a result of further increases in overcapacity, freight rates collapsed in almost all trades. Shipping companies attempted to adjust capacities in service in line with the static or even declining cargo volumes, so that the laid-up fleet worldwide increased sharply and, at 1.4 million TEU, reached the highest level of the past five years by year-end. Charter rates for container ships fell in part to historic lows and even failed to cover operating costs in some cases.

    As of December 31, 2015, Hamburg Süd’s fleet comprised 189 vessels (2014: 168), 48 of which are Group-owned. A total of 130 ships were deployed in the liner services and 59 in the tramp sector (bulk carriers, product tankers). In the course of 2015, the enhancement and modernization of the Hamburg Süd Group’s fleet was largely completed with the delivery of three more newbuilds of the “Cap San” class (10,600 TEU). Four vessels, each with a capacity of 3,800 TEU, were ordered for delivery in 2017. The container pool increased by 22 percent to 562,000 units on an annual average.

    According to the International Monetary Fund (IMF), the global economy and global trade will each grow by around 3 percent in 2016. While the US economy and the eurozone are roughly retaining their dynamic, the recession in Brazil is expected to continue (–3.8 percent). At 6.5 percent, China is set to remain the growth driver in the world economy, though its dynamism is diminishing.

    Following the significant growth of shipment volume in liner shipping in the past fiscal year, Hamburg Süd anticipates a further significant, albeit more moderate increase in carryings of some 8 percent for 2016 compared to the previous year. The once again above-average increase in excess of market growth is based primarily on the capacities and market shares built up in the past fiscal year, which are to be maintained throughout 2016 and selectively further expanded. Because freight rates are expected to remain under pressure due to continuing overcapacities and weak economic development, it is anticipated that the shipping group’s turnover will stay roughly the same.

    In the current market environment, Hamburg Süd, like most of its competitors, is also exposed to strong downward pressure on earnings. The projects successfully launched last year to achieve sustainable cost reductions will, therefore, also be further stepped up in 2016 by, among other things, measures to cut fuel consumption, the implementation of further synergies and economies of scale as well as progressive efficiency increases in processes. Where required, capacity reductions will be undertaken in individual trades.

    In 2016, further consolidation can be expected in liner shipping. The lines will only be able to regain reasonable levels of returns if capacities and cargo volumes will be in balance on a global scale. The result of Hamburg Süd liner shipping in 2016 is significantly dependent on the development of the global economy and global trade as well as of the industry’s ability to adapt to changed underlying conditions. No fundamental improvement of the 2016 market environment is expected in dry bulk shipping. For product tanker markets, the outlook for 2016 remains cautiously positive.

    Hamburg Süd is one of the few shipping companies to have formulated verifiable and binding environmental targets at an early stage.

    In this process, the environmental strategy has focused on, among other things, the reduction of carbon emissions and energy consumption in reefer containers, as well as the abandonment of tropical timber for container floors to the greatest possible extent.

    The aim by 2020 is to reduce carbon emissions of owned and chartered container ships by 45 percent per unit of transport performance (TEUkm) compared to the 2009 base year. By the end of 2015, emissions had already been lowered by more than a third.

2022 January 21

14:03 ClassNK issues Approval in Principle for ammonia-fueled Panamax bulk carrier developed by Planning and Design Center for Greener Ships (GSC)
14:02 TGE Marine announces completion of largest LNG Bi-Lobe Type C Tanks
13:23 Samskip adds 150 new sustainable reefer containers to its fleet
13:01 Icebreakers remain busy assisting shipping of the Gulf of Finland eastern part
12:13 Freight volumes increase at the Port of Gothenburg in 2021
12:12 Nippon Paint Marine’s new fastar antifouling earmarked for Cosco Shipping VLCC fleet
11:42 RZD invested heavily in its rolling stock upgrade in 2021
11:31 DP World launches a premium barge service between the Upper Rhine region and Rotterdam World Gateway
11:03 Israel orders three new submarines from thyssenkrupp Marine Systems
10:31 Port of Oakland import volume hit new record in 2021
10:11 Crude oil prices drop on US oil reserves growth
09:32 MABUX: Global bunker prices may slide down on Jan. 21
09:21 Baltic Dry Index as of Jan 20

2022 January 20

18:35 EuroDry announces agreement to acquire a 2014-built Supramax bulker
18:05 Valaris announces floater contract awards
17:43 Alfa Laval experiences increased demand for solutions related to LPG as fuel
17:26 Throughput of Chinese sea and river ports in 2021 climbed by 6.8% YoY
17:15 The U.S. Army gets $22.81 billion in supplemental funding of studies, projects and programs
17:05 Sanmar Shipyards delivers fourth powerful compact tug to SAAM Towage
16:50 Cargo traffic on IWW of Russia in 2021 rose by 1.2% to 110.3 million tonnes
16:35 Uber Boat by Thames Clippers builds the UK’s first hybrid high speed passenger ferries
16:15 American Cruise Lines unveils Project Blue
16:05 TGE Marine announces the completion of the tank building phase for two large LNG cargo tanks
15:31 Hafnia plans to acquire 12 modern LR1 tankers
15:25 Holland Shipyards Group develops new tug EDDY 24-50 E
15:05 ZIM announces new chartering agreement for three 7,000 TEU LNG dual-fuel container vessels
14:40 Exports of LNG and gas condensate from port Sabetta exceeded 19 million tonnes in 2021
14:11 Stena Line and Associated British Ports sign £100M deal for new ferry terminal at the Port of Immingham
13:45 Federal authorities asked to step into situation with coal transportation by Russian Railways
13:19 MABUX: Bunker Weekly Outlook, Week 03, 2022
13:12 Norside buys the platform supply vessel 'Farland' for offshore wind
12:46 New ICS guide helps seafarers navigate the digital bridge
12:08 The Harbour Master’s Division of the Port of Rotterdam Authority makes it through the second corona year unscathed
11:51 Port of Long Beach sets annual record with 9.38 million TEUs
10:46 Global Ports' consolidated marine container throughput increased by 2.8% y-o-y in 2021
10:10 Increase of cargo predicted for the Port of Riga this year
09:33 MABUX: Global bunker prices may turn over downward correction in the end of the day
09:25 Crude oil market sees downward price correction
09:08 Baltic Dry Index as of January 19

2022 January 19

18:20 New SGMF publication provides expansive and highly relevant guidelines on safe bunkering of LNG
18:03 ESL Shipping sells the barge Espa
17:52 High efficiency Wärtsilä power solutions to drive seven new Arctic Shuttle Tankers
17:50 Euroseas announces new charter for its 2,788 TEU, 2004-built vessel
17:33 Freeport of Riga Authority to invest almost EUR 1 million in implementation of port digital technology and IT solution projects this year
17:15 ABS, SDTR and SDARI develop methanol-fueled bulker
16:54 Thistle Wind Partners land 2 GW in ScotWind offshore wind leasing round
16:26 Results of Russian ports in 2021: infographics and analytics
16:05 Port of Blyth orders Konecranes Gottwald Generation 6 Mobile Harbor Crane
15:40 Equinor awarded 26 new production licences on the Norwegian continental shelf
14:56 Oboronlogistics’ Sparta IV to deliver project cargo to India
14:29 Sea Port of Saint-Petersburg increased its throughput in 2021 by 17% YoY
14:08 Growing orders for Alfa Laval FCM LPG fuel supply systems reflect strength in Alfa Laval’s broad LPG offering
13:45 Throughput of Novotrans at Ust-Luga port’s ferry terminal rose by 9.2% in 2021
13:24 ABB adds digital analytics feature to turbochargers, giving performance visibility to shipowners
12:51 Port of Corpus Christi finishes Fiscal Year 2021 with record tonnage
12:50 FESCO delivers equipment for NPP Akkuyu in Turkey
12:27 Helsinki City Board approves the Port of Helsinki Ltd development programme
12:13 METIS adds new functionality to cloud-based platform to enhance decarbonisation and compliance support
11:41 North makes key Fixed Premium P&I appointments to accelerate diversification drive
11:35 Jumbo-SAL-Alliance delivers comprehensive transportation solution for the transportation of offshore platform modules