Fitch: Profitable May be Tough for Container Shippers
Fitch Ratings-London-01 March 2018: Sustaining last year's improved profitability in 2018 may prove challenging for container shipping companies, Fitch Ratings says. The fact that some companies are likely to have remained loss-making in 2017 highlights the ongoing weakness in sector fundamentals due to persistent overcapacity, which may undermine a longer-lasting recovery. Financial reports or preliminary results released so far indicate that container shipping companies had stronger performance in 2017 than 2016. We expect most carriers to have boosted profitability, although performance varies company by company. Maersk Line generated EBIT of USD634 million in 2017 compared to a loss of USD421 million in 2016…
Hamburg-Sued Makes Profits
Despite a difficult market environment German container shipper Hamburg-Sued completed the year 2014 with a profit, says its chief executive Ottmar Gast. The company had last year, 2.5 percent more transportation volume, but sales declined due to falling prices and exchange rate effects, despite increased margins from 5.2 billion to 5.1 billion euros. "This year we will make 20 percent more volume and achieve a higher turnover than 2014," Ottmar said. "We were profitable last year and that's also our goal for 2015," he said. A consolidation is not yet in sight. Since 2009 earning the container shipping has been struggling.
Hamburg Süd Seeks Options after Failed Hapag-Lloyd Merger Talks
Germany's second biggest container shipper Hamburg Süd is seeking options for the business after merger talks with bigger rival Hapag-Lloyd failed last year, Chief Executive Ottmar Gast said on Tuesday. "We are working on alternatives," Gast told reporters at the results news conference of Hamburg-Sued parent Oetker Group. Gast, who is part of the four-member management group of Oetker Group's holding company Dr. August Oetker KG, did not provide details, noting only that "size isn't everything".
Eight modern vessels join LauritzenCool
The eight Polar vessels managed by Hamburg Sued will join the LauritzenCool fleet in December and January, including: Polar Argentina, Polar Brasil, Polar Chile, Polar Colombia, Polar Ecuador and Polar Uruguay, which were all built in 1992-93 and operate at a speed of 21 knots. Each also offers 529,369 cu. ft.; and 47 FEU on deck. Also joining the fleet are Polarstern and Polarlicht, both built in 1998 and offering 564,280 cu. ft. and 104 FEU on deck. These two also operate at 21 knots. LauritzenCool sprang out of the amalgamation of the two leading reefer operators Lauritzen Reefers and Cool Carriers, well known for their widespread global activities and strong customer orientation.
