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Arab Shipping Company News

22 May 2019

Marine Fuel: World First for Megaboxer MV Sajir

The 15,000 TEU megaboxer MV SAJIR to be converted to methane for operation (©Hapag-Lloyd)

"With the conversion of SAJIR, we are the first shipping company worldwide to convert a container vessel of this size to natural gas propulsion."  Richard von Berlepsch, Managing Director Fleet Management at Hapag-LloydIn its more than 170 years of existence, the Hamburg-based Hapag Lloyd  has used all kinds of solid and liquid fuels to generate energy for the propulsion of its ships. And now the shipping company has announced that it intends to convert the propulsion system of its 15…

18 Feb 2019

Hapag-Lloyd Gets Ratings Upgrade from Moody's

The international rating agency Moody’s has upgraded the German cargo container shipping line, Hapag-Lloyd AG's corporate family rating (CFR) to B1 from B2 and its senior unsecured bond rating to B3 from Caa1. The outlook remains stable.According to Moody's release, the improved rating acknowledges Hapag-Lloyd’s progress in integrating United Arab Shipping Company Limited (UASC) while reducing leverage and generating positive free cash flow on the back of tight cost management and increased efficiencies, Moody’s concluded in its press release published today.The rating upgrade reflects Hapag-Lloyd´s ability to achieve the level of expected…

31 Jan 2019

Hapag-Lloyd Redeems Bond Early

German-based container shipping line Hapag-Lloyd AG has decided to partially redeem EUR 170 million of its senior note on 11 February 2019 and prior to its maturity 2022 at a fixed redemption price of 103.375 percent.According to a press release from the transportation company, the senior note was issued in February 2017 with an aggregate principal amount of EUR 450 million. The annual coupon is 6.75 percent."This partial redemption will be done from cash proceeds, predominantly resulting from a settled long-term receivable of United Arab Shipping Company Limited in an amount of USD 152 million (around EUR 133 million as of today). This receivable arose in the course of the business combination with Hapag-Lloyd from the sale of an investment in an associate…

11 Sep 2018

Hapag-Lloyd Christens “Al Jmeliyah” in Rotterdam

Hapag-Lloyd's 15,000 TEU ship "Al Jmeliyah" was officially christened in Rotterdam. Naming patron is Inge Sijbesma, the wife of Feike Sijbesma, CEO of the corporation DSM – one of Hapag-Lloyd’s biggest customers in the Netherlands.The name “Al Jmeliyah” is Arabic for “the beautiful one.” With its ten sister vessels, the “Al Jmeliyah” numbers among the so-called “Ultra Large Container Vessels” in Hapag-Lloyd’s fleet.However, this was not the first time that Hapag-Lloyd has christened a ship in Rotterdam. The most recent one was the christening of the “Rotterdam Express” in 2000. “With its 4,890 TEU, it was enormous for the time,” said Hapag-Lloyd CEO Rolf Habben Jansen. “Less than 20 years later, we are christening a ship here that is three times as big.

10 Aug 2018

Hapag-Lloyd to Accelerate Digitalization as it Doubles 1H 2018 Loss

The the first half year 2018 net loss of Germany's Hapag-Lloyd is more than doubled to UER 100.9 million ($116 million) from EUR 42.7 million (USD 49 million) a year ago.The shipper attributed this loss to rising fuel costs and the slow recovery in freight rates diluted the synergies from the German ocean carrier’s merger with United Arab Shipping Company."The first half of 2018 was shaped by clearly increasing fuel costs, higher charter rates and a slower than expected recovery of freight rates. In response to that, we have implemented additional measures to recover these costs: we are critically reviewing the economic viability of our ship systems and are further optimising our terminal contracts…

05 Aug 2018

UASC Sues World Fuel Services

Dubai-based shipowner United Arab Shipping Company (UASC) has filed suit against Miami-based marine fuels provider World Fuels Services (WFS) seeking relief from damages incurred through the bunkering of off-spec fuel oil in 2016, reports Arabian Industry.UASC is seeking relief from damages incurred through the bunkering of the off-spec fuel oil, according to the suit filed in the US District Court for the Southern District of Florida on 27 June, 2018.The Middle East shipping giant claims that on or about 21 September 2016, it entered into contract with WFS for delivery of 3,500-4,200 tons of high-sulphur 380cst bunker fuel for containership UASC JILFAR in the port of Kavkaz…

10 Jul 2018

Hapag-Lloyd AGM Okays All Proposed Resolutions

Hapag-Lloyd AG shareholders approved with the required majority all items on the agenda put to a vote at the Annual General Meeting in Hamburg. This included an agreement upon the use of the net profit (item 2) and thereby the payment of a dividend of EUR 0.57 per share. Shareholders also formally approved the actions of the sitting members of the Executive Board for the financial year 2017 (item 3) and also the actions of the sitting members of the Supervisory Board (item 4) for that period. “Our fast and successful merger with the United Arab Shipping Company has significantly strengthened our competitive position. We achieved good results for the last financial year and have made a solid start to the first quarter of 2018.

14 May 2018

Hapag-Lloyd CEO Says Market Is Still Challenging

Hapag-Lloyd has completed the first quarter 2018 with earnings before interest, taxes, depreciation and amortisation (EBITDA) of EUR 219.4 million, which is an increase compared to the first quarter of the previous year (EUR 135.3 million). The operating result before interest and taxes (EBIT) stood at EUR 53.7 million after three months (first quarter 2017: EUR 7.5 million). The group net result amounted to EUR -34.3 million and thereby EUR 23.8 million over the quarterly result of the previous year (EUR -58.1 million). The figures of the first quarter 2018 include United Arab Shipping Company Ltd. (UASC) and can therefore only be compared to a limited extent with the figures of the first quarter 2017 (without UASC).

28 Mar 2018

Thorsten Haeser Steps Down as CCO of Hapag-Lloyd

Thorsten Haeser has quit as chief commercial officer of Hapag-Lloyd, which has reorganised its executive Board. CCO Thorsten Haeser is leaving the Company as at 31 March 2018 on the most amicable of terms. With great professionalism and personal dedication, he managed and realigned the Executive Board’s sales responsibilities. Following the merger with container liner shipping company United Arab Shipping Company (UASC), Haeser played a key part in the smooth integration of UASC’s business into Hapag-Lloyd AG. Haeser was also instrumental in advancing the digitalisation of the Company. Overall, he made a significant contribution to ensuring the future viability and competitiveness of Hapag-Lloyd.

15 Dec 2017

Hapag-Lloyd Bullish on Mexico

After evaluating performance in 2017, the German shipping line serving sectors such as pharmaceuticals, the automotive industry and the technology sector in Mexico expects maritime shipping volumes to experience double-digit growth in 2018 and foresees a continuous increase in cargo volumes. On holding its annual meeting with Latin American leaders in Mexico, the shipping line Hapag-Lloyd pointed to significant growth in infrastructure and operational capacities in the country on reporting its year-end closing for 2017. This positive development is thanks to the favorable outlook in maritime transport in Mexico and worldwide. During the current year…

30 Nov 2017

Hapag-Lloyd Completes Integration with UASC

Hapag-Lloyd successfully completed the integration of UASC into the Group on 30 November 2017. At a gathering of the shipping company’s global management in Hamburg, Rolf Habben Jansen, CEO of Hapag-Lloyd AG, said in the afternoon: “Thanks to the very good cooperation of our teams we have managed to successfully implement this integration in just six months. Hapag-Lloyd merged with the United Arab Shipping Company on May 24, 2017. Within the subsequent six months, the operating businesses, the IT systems, the different fleets, and the corresponding departments and country organizations were brought together. With more than 12,000 employees in five sales regions and 126 countries…

14 Nov 2017

Hapag-Lloyd Reports Better Results for Q3 2017

Hapag-Lloyd closed the third quarter of 2017 with a significant positive Group net profit and a much improved operating result (EBIT). The integration with United Arab Shipping Company (UASC) is almost completed and on schedule to be finalized by the end of the year. For the third quarter the net profit amounted to EUR 54.3 million (prior-year period: EUR 8.2 million), the EBIT rose to EUR 180.6 million (prior-year period: EUR 65.6 million), and the EBITDA stood at EUR 361.5 million (prior-year period: EUR 184.6 million). In the first nine months of 2017, Hapag-Lloyd was able to achieve an EBITDA and EBIT of EUR 721.9 million (prior-year period: EUR 381.3 million) and EUR 267.9 million (prior-year period: EUR 25.9 million)…

29 Aug 2017

Hapag-Lloyd UASC Complete Integration Soon

In the first half of 2017, Hapag-Lloyd delivered a significantly better operating result and healthy volume growth. The merger with United Arab Shipping Company (UASC) on 24 May 2017 helped the Company to strengthen its market position and climb to fifth place among the world’s liner shipping companies. The transport volume increased by 14.0% in the first six months, to 4.22 million TEU, which includes almost 250,000 TEU from UASC-Group which was consolidated from 24 May onwards. The combined freight rate of 1,056 USD/TEU is 1% above the Hapag-Lloyd rate of the first half of 2016. “The market in container shipping remains challenging, but we have managed to make very good progress in the first half year of 2017,” said Rolf Habben Jansen, CEO of Hapag-Lloyd AG.

20 Jun 2017

Fitch: Boxship Rates Rise, Capacity Still Key

Fitch Ratings' Report: What Investors Want to Know: Container Shipping. Container shipping companies have benefited from a modest increase in freight rates since the start of the year, but a sustainable recovery in the container market will only be achieved by reaching a viable supply/demand balance through capacity cuts, Fitch Ratings says. Container transport volumes outstripped capacity growth in 2016 for the first time since 2010-2011, helped by a higher rate of vessel scrapping and delayed deliveries. We expect this to be only a temporary reversal, as net capacity growth will accelerate in 2017 and 2018, exceeding demand growth and contributing to increased overcapacity.

09 Jun 2017

Hapag-Lloyd, UASC Merger Unaffected by Qatar Spat

Qatar's row with its powerful Gulf neighbours should not scupper the just-agreed merger of German shipping company Hapag-Lloyd with sector peer United Arab Shipping Company (UASC) that is owned by six Arab states of the Gulf region, a source close to Hapag-Lloyd said.   He said there were currently no signs that the diplomatic crisis would impact the deal that the states had made last month as one party, vis-a-vis Hapag-Lloyd, bilaterally.   The source, a senior manager close to the German firm's current owners, said there was no disagreement between the Arab shareholder parties.   Reporting by Jan Schwartz

30 May 2017

Hapag-Lloyd Stakeholders Okay Capital Increase

Hapag-Lloyd shareholders approved all items on the agenda at today’s Annual General Meeting. In particular, the shareholders approved the creation of new authorised share capital. This is to be used for a planned capital increase of USD 400 million, which is scheduled to take place within six month after the closing of the merger with the Arabian liner shipping company UASC. The closing took place on May 24. Some of the anchor shareholders have committed to backstop the cash capital increase in the amount of USD 400 million. With the approval of the shareholders, all key preconditions have been met for the capital increase, which aims to strengthen the financial position of the company.

24 May 2017

Hapag-Lloyd, UASC Complete Merger

Hapag-Lloyd and United Arab Shipping Company (UASC) merged yesterday (May 25, 2017). The merger between the two liner shipping companies was completed in Hamburg. With 230 vessels and a shared fleet capacity of approximately 1.6 million TEU, Hapag-Lloyd is the fifth-largest liner shipping company in the world. Hapag-Lloyd will remain a publicly traded company registered in Germany with its headquarters in Hamburg. “This is an important strategic milestone and a big step forward for Hapag-Lloyd,” said Rolf Habben Jansen, Chief Executive Officer of Hapag-Lloyd. “We now not only have a very strong market position in Latin America and the Atlantic, but also in the Middle East, where we will become one of the leading carriers.

23 May 2017

Gulf Bidders Emerge for UASC-linked Shipping Unit

File photo: UACC

Gulf-based bidders have emerged for the part-owned subsidiary of United Arab Shipping Company (UASC) whose sale is key to finalising the merger between UASC and German container shipping line Hapag Lloyd , sources close to the matter said. Last week, sources told Reuters that Hapag Lloyd was close to completing the 7-8 billion-euro merger after UASC shareholders agreed terms to repay outstanding debt. A sale of United Arab Chemical Carriers (UACC) - in which UASC holds the biggest stake - is also part of the terms of the Hapag Lloyd merger deal.

18 May 2017

Hapag-UASC Tie-up Nears Completion

Photo: Hapag-Lloyd

German shipping line Hapag Lloyd is close to completing a merger with United Arab Shipping Company (UASC) after UASC's shareholders agreed terms to repay outstanding debts, sources familiar with the talks told Reuters. The deal to create the world's fifth-biggest shipping company, valued at about 7 billion to 8 billion euros ($7.8-$8.9 billion), had been scheduled to complete at the end of last year. It would give Hapag Lloyd access to bigger ships on the major Asia to Europe trade route.

03 May 2017

U.S. FMC Unanimously Rejects Proposed Tripartite Pact

U.S. Federal Maritime Commissioner William P. Yesterday, I voted to reject the Tripartite Agreement proposed by Kawasaki Kisen Kaisha, Ltd. (K Line); Mitsui O.S.K. Lines Ltd. (MOL); and Nippon Yusen Kaisha (NYK). This agreement was unanimously rejected by the Commissioners on the Federal Maritime Commission (FMC). This decision by the FMC in no way precludes the Japanese carriers from merging their container trade business units into a single stand-alone company. Rather, the vote recognizes that the FMC cannot approve certain actions that would allow the three Japanese companies to act as a merged entity prior to actually merging. The Shipping Act does not provide the Federal Maritime Commission with authority to review and approve mergers.

28 Mar 2017

Hapag Lloyd-UASC Merger Hits Snags

Photo: Hapag-Lloyd

A merger of Hapag-Lloyd and United Arab Shipping Company (UASC) has hit a snag, with the German shipping line and some banks seeking assurances that UASC's top shareholder Qatar remain committed to the deal for the long term, sources say. Hapag Lloyd Chief Executive Rolf Habben Jansen told a news conference this week he had underestimated the complexity of the 7 billion to 8 billion euro ($7.6-$8.7 bln) deal, which will create one of the world's largest shipping lines. Two finance sources…

24 Mar 2017

Hapag-Lloyd Says Prospects Buoyed by Rising Freight Rates

File photo: Hapag-Lloyd

German container shipping company Hapag-Lloyd expects increased operating earnings this year, it said on Friday, citing a rise in freight rates as market conditions improve. The shipping industry has been grappling with a prolonged downturn brought about by overcapacity in a faltering global economy, but Hapag Chief Executive Rolf Habben Jansen pointed to signs of upward momentum. "We expect some market improvement in 2017, but our success will largely depend on our ability to achieve more sustainable freight rates," he said.

22 Mar 2017

Container Shippers Ordered to Testify in US Investigation

File photo: Hapag-Lloyd

The U.S. Justice Department has ordered top executives from several container shipping lines to testify in an antitrust investigation into an industry that is the backbone of global trade, the companies said on Wednesday. The world's biggest container shipper, Denmark's A.P. Moller-Maersk, Germany's Hapag Lloyd, Taiwan-based Evergreen, Hong Kong-based Orient Overseas Container Line (OOCL) said their executives were among those who had been subpoenaed. The United States is concerned that the proposed alliances of several major companies…