[161117.EN.BIZ] Hapag-Lloyd Net Profit Surges as Merger With UASC Boosts Box Volume

Germany's Hamburg-based carrier Hapag-Lloyd closed the third quarter of 2017 with a group net profit of US$63.92 million compared with $9.6 million in the same three months of last year and an improved operating result.

Container volume increased by 24.4 per cent in the first nine months of the year, boosted by stronger demand and the integration of United Arab Shipping Company (UASC) that was acquired earlier this year.

Hapag-Lloyd said in its earnings statement that the integration with UASC was almost completed and on schedule to be finalised by the end of the year.

"The good operating result that we have achieved after three quarters is not only due to the positive development of the global economy and the increasing global container transportation volume," said Rolf Habben Jansen, CEO of Hapag-Lloyd.

"The quick and smooth integration of UASC into the Hapag-Lloyd Group has also played a crucial role. We have already been able to realise the first synergies resulting from the merger, which will help us to further solidify our position in the sector."

Hapag-Lloyd handled 7 million TEU in the first nine months that generated revenue of $8.6 billion and an earnings before interest and taxes of $315 million, IHS Media reported.

Hapag-Lloyd continues to expect significant increases in transport volumes, in bunker price, and an unchanged average freight rate. The average freight rate in the January through September period increased by just 2 per cent, or $23 per TEU, a surprisingly low figure. Maersk Line reported its average rates rising 14 per cent during the same period.

Source : HKSG.