Tuesday, October 3, 2023
HomeContainersHapag-Lloyd CEO Says Shipping Still in the Thick of Supply Chain Disruptions

Subscribe

To our FREE newsletter
Get all the latest maritime news delivered straight to your inbox.

Hapag-Lloyd CEO Says Shipping Still in the Thick of Supply Chain Disruptions

Global container shipping problems related to post-COVID 19 logistics problems have intensified in the third quarter and show no sign of letting up, the world’s number five operator, Hapag-Lloyd, said on Thursday.

Port congestion and high spot freight rates, caused by a combination of unexpected demand recovery and tight shipping space, would continue at least during the rest of 2021 and into the first quarter of next year, Chief Executive Rolf Habben Jansen told reporters.

Container usage in August was up 20% year-on-year, he said in an online briefing, citing information received by the Hamburg-based company.

Meanwhile, the company’s cargo turnaround time has risen to up to 60 days from the normal 50 days, meaning that 20% more containers are bound in shipment than before the crisis – without delivering more cargo.

As demand outstrips capacity, the group still expects an increase of only a few percent in its full year transport volumes after recording a 4% rise in January-June, Habben Jansen said.

Among measures to remedy the problems, which include large vessel orders, Hapag-Lloyd last month ordered another 75,000 TEU (twenty-foot equivalent units) worth of containers for receipt in the fourth quarter.

Separately, Habben Jansen commented on possible changes to shipping flows once it completes its freshly announced purchase of a 30% stake in container Terminal Wilhelmshaven (CTW) and 50% of Rail Terminal Wilhelmshaven (RTW) at JadeWeserPort on the North Sea Coast west of Hamburg.

The move, which is subject to approval by antitrust authorities, has caused concern in the state of Hamburg that possible volume handling losses could hit the city’s economy.

Habben Jansen said that he expects some 85-90% of usual volumes still coming into Hamburg after the transaction.

He said the acquisitions were aimed at securing greater volumes for German ports in general, amid competition with Antwerp and Rotterdam for receipts from the Far East.

[reuters]

Related Posts

Video

Finance & Economy
Shipping News
Ports

TOP Ships Announces Reverse Stock Split

TOP Ships announced that it has determined to effect a 1-for-12 reverse stock split of the Company’s issued common shares. The Company’s shareholders approved the...

Carnival Earnings Outlook Misses While Fuel Costs Near 15-Year High

Carnival Corp. posted a profit for the first time since 2020 but issued a fourth quarter earnings outlook that missed Wall Streets’ expectations as...

Sphinx Investment Corp Increases Stake in OceanPal

On September 28, 2023, an OceanPal SEC filing revealed that Sphinx Investment Corp. had raised its ownership in OceanPal, now holding a substantial stake...

Star Bulk Announces the Repurchase of 10 Million of Its Common Shares

Star Bulk announced that it entered into a Repurchase Agreement (with OCM XL Holdings, LP, a limited partnership incorporated in the Cayman Islands, pursuant...

Trafigura announces executive leadership changes

Trafigura Group Pte Ltd. has announced an evolution of its executive team to further strengthen leadership and focus across its global activities during a...

MSC to buy 50% stake in Italian passenger rail group Italo

Shipping group MSC has entered into a binding agreement to acquire a 50% stake...

Higher capesize rates drive Baltic index higher

The Baltic Exchange’s main sea freight index, tracking rates for ships carrying dry bulk...

Baltic index snaps 4-day winning streak as capesize rates slip

The Baltic Exchange’s main sea freight index, tracking rates for ships carrying dry bulk...

Baltic index scales 11-month peak on strong capesize rates

The Baltic Exchange’s main sea freight index, which tracks rates for ships carrying dry...

Baltic index scales over 9-month high on capesize surge

The Baltic Exchange’s main sea freight index, which tracks rates for ships carrying dry...

Ukraine: 5 More Cargo Ships Head For Black Sea Ports – report

Five more ships are on their way to Ukrainian sea ports using a new corridor opened to resume predominantly agricultural exports, an alternative arrangement...

Piraeus Port reports strong H1 2023 results

The Piraeus Port Authority SA, which operates Greece’s biggest and busiest port, reported a 48.8-percent increase in pre-tax earnings for H1 2023 – 49.4...

Greece names Thessaloniki port operator preferred bidder for Volos port

Greece’s privatisation agency has named the operator of Thessaloniki port as the preferred bidder for acquiring a 67% stake in the port of Volos,...

Drewry: Port Throughput Index Down 2.1% in July

The Global Container Port Throughput Index fell 2.1% MoM in July 2023, with the small rises recorded in Africa and Oceania having been insufficient...

Vopak: Agreement with Infracapital on sale of Rotterdam chemical terminals

Vopak announces that it has reached an agreement with Infracapital on the sale of its three chemical terminals in Rotterdam (Botlek, TTR and Chemiehaven)...