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Thursday, March 28, 2024
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Hapag News

14 Mar 2024

Hapag-Lloyd to Seek Cost Cuts After Net Profit Slump

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German container shipper Hapag-Lloyd said on Thursday the global oversupply of container ships and a crisis in the Red Sea will force it to cut costs in 2024, adapting sailings and ports following a bruising 83% fall in net profit.Ship operators face prolonged disruption while Yemen-based Houthi militants are attacking vessels travelling on one of the world's busiest routes, wiping out the benefit from higher freight rates with costly redirections around Africa.Hapag-Lloyd's problems chime with those of competitors such as Maersk and CMA CGM, exacerbated by the arrival of additional ships orde

12 Mar 2024

SAAM Closes 2023 with Historic Earnings

Source: SAAM

SAAM reported net income of US$501 million in 2023, representing its best-ever results thanks to the sale of its port and logistics assets to Hapag-Lloyd, which generated a net gain of US$422 million.Sales for the year totaled US$540 million and EBITDA was US$160 million, surpassing the prior year by 17% and 9%, respectively."The sale of our port terminal and inland logistics operations leaves us in a solid position to move forward on the path we have set for ourselves: to lead the consolidation process in the towage industry and grow in air cargo logistics services.

15 Feb 2024

WSC Proposes Green Balance Mechanism

© Kalyakan / Adobe Stock

As the IMO prepares for negotiations on regulations to support net-zero by 2050 at MEPC 81 in March, the World Shipping Council (WSC) has proposed a greenhouse gas pricing mechanism it calls the Green Balance Mechanism.The aim is to provide a new approach to greenhouse gas pricing which makes it possible to close the price gap between fossil fuels and green fuels, at the lowest possible overall cost:• Through the Green Balance Mechanism, fees are taken from fossil fuels and allocated to green fuels used…

08 Feb 2024

Maersk Warns Oversupply to Hit Profits

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Maersk warned on Thursday that container shipping overcapacity would hit profits more than expected this year and that it didn't see a major boost from the jump in freight rates due to Red Sea disruptions, hammering its shares.The warning, which also led the Danish shipping giant to suspend its share buyback programme, is in stark contrast with investors' recent optimism about the sector.Container shipping companies have been among the best-performing stocks in Europe this year…

31 Jan 2024

CMA CGM Lines Up Methanol Retrofits

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CMA CGM has lined up several of its existing containerships for conversion to dual-fuel methanol propulsion.The French ocean carrier has signed contracts with China State Shipbuilding Corporation’s (CSC) Qingdao Beihai Shipbuilding to carry out the conversions starting from mid-2025. The program will reportedly include one or two 9,300 TEU vessels but could grow to up to 10 ships if successful.CMA CGM joins a growing list of container shipping companies that have moved to convert ships to run on methanol…

31 Jan 2024

Navigating Disruption: CMA Shipping 2024 Unveils Agenda and Speaker Lineup

Knut Orbeck-Nilssen, Chief Executive Officer, DNV (Photo: CMA Shipping)

C-Suite leaders of ABS, Panama Canal Authority, BIMCO, INTERCARGO, IACS, DNV, Stena Bulk, Hapag-Lloyd, IBIA, International Seaways and many more have been announced for the conference lineup at CMA Shipping 2024.With just six weeks to go, eager anticipation is growing for the 39th edition of CMA Shipping taking place in Stamford, Conn., from March 12-14, 2024.The conference agenda promises to highlight pertinent issues surrounding the future of shipping, and how the industry can navigate challenges such as the energy transition, crewing and education, safety and compliance.

17 Jan 2024

“This is not a decision against THE Alliance,” says Hapag-Lloyd Chief

Rolf Habben Jansen, CEO, Hapag-Lloyd. Copyright Thies Raetzke/Hapag-Lloyd

Hapag-Lloyd and Maersk signed an agreement for a new long-term operational collaboration called Gemini Cooperation, aiming to start in February 2025.Simultaneous with the announcement, Hapag-Lloyd informed its partners in THE Alliance that it would end its participation in January 2025. In a press call with journalists, Rolf Habben Jansen, CEO, Hapag-Lloyd stressed this is “not a decision against THE Alliance, this is a decision for Gemini Corporation.”“This is about bringing schedule reliability to the next level…

17 Jan 2024

OPINON: Tackling the Houthi Drone Threat with AI

OrcaAI CTO Dor Raviv. Photo: OrcaAI

Houthi rebel drone attacks on vessels traversing the Red Sea and Suez Canal route, accounting for 10% of global trade, have exposed the shortcomings of current ship alert systems.The unpredictability and increased frequency of these attacks have created a challenging security environment for ships passing the area via the Bab el Mandeb strait, posing a substantial risk to seafarers and maritime trade by endangering the safety of the crew and cargo.Initially focused on Israel-related ships in solidarity with Hamas…

17 Jan 2024

Maersk and Hapag-Lloyd Set Up Operational Cooperation

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Shipping industry majors Hapag-Lloyd and Maersk have signed an agreement for a new long-term operational collaboration called ‘Gemini Cooperation’, which will start in February 2025.The ambition is to deliver a flexible and interconnected ocean network with industry-leading reliability.The new cooperation between the companies will comprise a fleet pool of around 290 vessels with a combined capacity of 3.4 million containers (TEU). Maersk will deploy 60% and Hapag-Lloyd 40%, the shipping giants said.As a part of the agreement…

15 Jan 2024

Houthi Attacks Expose China's Commercial Stakes in Red Sea

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China has called for an end to attacks on civilian vessels in the Red Sea that have dramatically widened the Hamas-Israel conflict and placed Beijing's commercial interests along the Suez Canal at risk.The Iran-backed Houthi militia from Yemen that seeks "Death to Israel" is challenging the ability of the world's biggest trading nation to defend billions in strategic investments in Egypt.Since President Abdel-Fattah el-Sisi came to power in 2014, China has stepped up its investment and commercial activities along Egypt's Suez Canal…

14 Jan 2024

Tesla, Volvo Car Pause Output as Red Sea Shipping Crisis Deepens

© Björn Wylezich / Adobe Stock

Automakers Tesla and Geely-owned Volvo Car said they were suspending some production in Europe due to a shortage of components, the first clear sign that attacks on shipping in the Red Sea are hitting manufacturers in the region.The United States and Britain launched a series of strikes on Yemen on Thursday, aimed at the Iran-backed Houthi militia whose attacks on international shipping have disrupted one of the world's most important shipping routes.Container shipping rates jumped…

12 Jan 2024

Container Rates Soar on Concerns of Prolonged Red Sea Disruption

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Container shipping rates for key global routes have soared this week, with U.S. and UK air strikes on Yemen stirring concerns of a prolonged disruption to global trade in Red Sea, one of the world's busiest routes, industry officials said on Friday.U.S. and British warplanes, ships and submarines launched dozens of strikes across Yemen overnight in retaliation against Iran-backed Houthi forces for attacks on Red Sea shipping, widening regional conflict stemming from Israel's war…

04 Jan 2024

Ship Traffic Through Suez Canal Down 20% Due to Houthi Attacks

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Shipping traffic through the Suez Canal fell 20% between Dec. 24 and Jan. 2 compared to a year earlier, according to the PortWatch platform, after shipping companies began re-routing vessels in response to attacks by Yemen's Houthis.From Dec. 15, when Maersk became the first shipper to announce diversions, until Jan. 2, the most recent date for which International Monetary Fund's PortWatch has data, the number of tankers and cargo ships passing through the crucial shipping lane fell by 10%.But seven-day averages only began dipping on Dec.

02 Jan 2024

Shipping Firms Continue to Pause Red Sea Shipments

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Global Denmark's Maersk and German rival Hapag-Lloyd said on Tuesday their container ships would continue to avoid the Red Sea route that gives access to the Suez Canal following a weekend attack on one of Maersk's vessels.Both shipping giants have been re-routing some sailings via Africa's southern Cape of Good Hope as Yemen-based Houthi militants attack cargo vessels in the Red Sea. The disruption threatens to drive up delivery costs for goods, raising fears it could trigger…

29 Dec 2023

Container Lines Continue to Divert from Suez Canal

© Kalyakan / Adobe Stock

Hapag-Lloyd will continue to divert its vessels around the Suez Canal for security reasons, a spokesperson for the German container shipper said on Friday, adding a further assessment would be made on January 2.Mitsui O.S.K. Lines and Nippon Yusen, Japan's largest shipping companies, also said their vessels with links to Israel were avoiding the Red Sea area. Both companies said they were monitoring the situation.Shipping companies including Hapag-Lloyd and Denmark's Maersk earlier…

28 Dec 2023

US Allies Reluctant on Red Sea Task Force

The Arleigh Burke-class guided-missile destroyer USS Laboon (DDG 58) prepares to depart Rota, Spain, December 11, 2023. Laboon is on a scheduled deployment in the U.S. Naval Forces Europe area of operations, employed by the U.S. 6th Fleet to defend U.S., Allied and partner interests. (Photo: Alice Husted / U.S. Navy)

U.S. President Joe Biden hoped to present a firm international response to Yemen's Houthi attacks on Red Sea shipping by launching a new maritime force, but a week after its launch many allies don't want to be associated with it, publicly, or at all.Two of America's European allies who were listed as contributors to Operation Prosperity Guardian - Italy and Spain - issued statements appearing to distance themselves from the maritime force.The Pentagon says the force is a defensive…

27 Dec 2023

Hapag-Lloyd Studying Wind-assisted Propulsion

(Image: Hapag-Lloyd)

Hapag-Lloyd reports it has initiated a conceptual study for a 4,500 TEU ship featuring a wind-assisted propulsion system.The German shipping company, which aims to be carbon neutral by 2045, is exploring the use of wind-assisted propulsion systems among a number of options to make its shipping operations sustainableThe company said its recent wind-assisted propulsion research is supported by Boris Herrmann and TEAM MALIZIA from the professional sailing sector and have now outlined a potential containership design. The vessel's design includes eight sails totaling 3,000 square meters.

27 Dec 2023

Shipping Firms Take First Steps Toward Red Sea Return

© Mariusz / Adobe Stock

France's CMA CGM is increasing the number of vessels travelling through the Suez Canal, it said on Tuesday, joining Maersk in returning to the area after U.S.-led efforts to prevent attacks.The world's top shipping companies, including Maersk and Hapag-Lloyd, stopped using Red Sea routes after Yemen's Houthi militant group began targeting vessels this month, disrupting global trade through the Suez Canal.Instead they have rerouted via southern Africa, a longer and more expensive journey.

26 Dec 2023

Hapag-Lloyd to Decide About Red Sea Routes Mid-Week

© Daniel / Adobe Stock

Germany's Hapag-Lloyd will decide on Wednesday whether to resume journeys through the Red Sea, a spokesperson said on Tuesday as Maersk prepared to return to the area after a U.S.-led operation began providing safety against attacks.The world's top shipping firms, including Maersk and Hapag-Lloyd, stopped transiting the Red Sea after Yemen's Houthi militant group starting targeting vessels earlier in December, disrupting global trade through the Suez Canal.Instead they have rerouted via southern Africa, a longer and more expensive journey.

21 Dec 2023

More Ships to Avoid Red Sea as Attacks Disrupt World Trade

© Björn Wylezich / Adobe Stock

German shipping company Hapag-Lloyd said on Thursday it was the latest company planning to avoid the Red Sea after attacks there by Yemen's Houthi group on merchant vessels, which have disrupted global trade and triggered a multinational naval action.Hapag-Lloyd said it would reroute 25 ships by the end of the year from the key waterway as freight rates and shipping stocks have increased because of the disruption. Avoiding the Red Sea and Suez Canal means following a far longer route around Africa.The Iran-aligned Houthis…

21 Dec 2023

Panama Canal Reports No Traffic Increase Amid Red Sea Attacks

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The Panama Canal Authority said on Thursday it has not seen a notable traffic increase due to the situation in the Red Sea, where attacks by Yemen's Houthi group are forcing vessels to divert or switch their transponders off.The hostilities have put a chokehold on ship passages through the Suez Canal, which handles about 12% of worldwide trade, and according to analysts could end up forcing some vessel owners to try to pass the Panama Canal even amid transit restrictions due to severe drought."To date…

27 Dec 2023

Maersk Puts Dozens of Vessels Back on Schedule for Travel Via Suez Canal

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Denmark's Maersk said on Wednesday it has scheduled several dozen container vessels to travel via the Suez Canal and the Red Sea in the next several weeks, in a further sign that global shipping firms are returning to the route.The schedule remains subject to change based on specific contingency plans that may be formed over the coming days, the company said.The world's top shipping companies, including container giants Maersk and Hapag-Lloyd, stopped using Red Sea routes after Yemen's Houthi militant group began targeting vessels earlier this month…

26 Dec 2023

Shipping Companies Take First Steps Towards Red Sea Return

© Mariusz / Adobe Stock

France's CMA CGM is increasing the number of vessels travelling through the Suez Canal, it said on Tuesday, joining Maersk in returning to the area after U.S.-led efforts to prevent attacks.The world's top shipping companies, including Maersk and Hapag-Lloyd, stopped using Red Sea routes after Yemen's Houthi militant group began targeting vessels this month, disrupting global trade through the Suez Canal.Instead they have rerouted via southern Africa, a longer and more expensive journey.