United Arab Shipping News

Classification society DNV announced Tony Linden will step into the role of Area Manager for the UK & Ireland effective Thursday, having recently been appointed as Business Development Manager for the same area.“I am delighted to congratulate Tony on his appointment. His enterprising background, technical know-how and clear understanding of the complex challenges facing the shipping industry will make him an invaluable asset to the market,” said Torgeir Sterri, DNV Maritime Regional…

"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…

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…

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…

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.

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…

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…

It took British Maritime Minister Nusrat Ghani just one go to activate the mechanism that sent a big champagne bottle crashing against the massive sidewall of the “Afif”. This marked the official naming of the 15,000 TEU container ship on 16 July 2018. The name “Afif” is of Arabic origin and means “purity” and “honesty”; also, Afif is a city in central Saudi Arabia. The ship is technically equipped to use LNG fuel. With its ten sisters, “Afif” belongs to the category of “Ultra Large Container Vessel”, the second-largest ship class in Hapag-Lloyd’s fleet. “It is an honour to name Afif, Hapag-Lloyd’s latest container ship, as it will have a vital role in the growth of the UK economy by moving our exports and imports,” said Nusrat Ghani.

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.

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).

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.

Corporate Credit Rating agency Standard & Poor's has affirmed at B+. The rating agency acknowledges debt prepayments and cost synergies and expects adequate liquidity in 2018. Rating agency Standard & Poor’s affirmed Hapag-Lloyd’s B+ rating and revised the outlook from negative to stable. Hapag-Lloyd’s debt prepayments and cost synergies after the integration of UASC combined with improved shipping rates and stable near-term industry prospects will support rating-commensurate financial measures and liquidity through 2018, Standard & Poor’s mentioned in the Research Update. The outlook revision reflects the expectation that Hapag-Lloyd's improved EBITDA performance and gradual debt reduction will contribute to rating commensurate credit metrics and adequate liquidity in 2018.

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…

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…

The explosive growth of international boxships is challenging not only the physical infrastructure of North American ports, but also the very nature of the existing supply chains that they impact. The recent dialogue on container shipping has been all about so-called “mega-ships;” those vessels that with larger capacity than those that are already in service at any point in time. In the container trades, as in tanker and drybulk arenas, ocean-going vessels are one link, albeit an important component, within broader supply chains.

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)…

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.

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.

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

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.

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.

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.

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.