Hapag-Lloyd said its first-half year “result is disappointing,” as its net loss for the period stood at EUR 142.1 million (USD 158.3 million), compared to a net profit of EUR 157.2 million (USD 175.2 million) in the previous year.
Revenue declined to EUR 3.8 billion in the first half of the year from last year’s first half revenue of EUR 4.7 billion, while the company managed to cut year on year transport expenses by some EUR 600 million, or almost 16 percent.
“The first-half result is disappointing,” Rolf Habben Jansen, CEO of Hapag-Lloyd said, adding that the company’s cost saving measures and efficiency programs are on track and that the synergies from the merger with CSAV are being realized on schedule. However, he said that “this isn’t enough to completely compensate for the significant drop in the average freight rate.”
In the second half of the year, Hapag-Lloyd said that its main focus would be to further improve its cost base and to do “whatever we can to get freight rates back to a more sustainable level.”
The half-year period also witnessed stable transport volume at 3.7 million TEU, representing a 0.4 percent drop compared to the prior year period, while the average freight rate fell by USD 254 year on year to 1,042 USD/TEU, or almost 20 percent.