Hapag-Lloyd’s shipping profits rise 259% in first nine months

Hapag-Lloyd’s shipping profits rise 259% in first nine months    The shipping division of Hapag-Lloyd increased its profit by 259 percent in the first nine months, to 147 million euros ($175 million), from 41 million euros in the corresponding period of 2002.
   The results reflect the recovery of the container shipping activities of Hapag-Lloyd, and also include the results of its cruise shipping arm.
   “Hapag-Lloyd Container Linie finished the third quarter (of) 2003 with an increase in earnings year-on-year, thus continuing on the positive trend of the previous quarters,” said Tui AG, the parent company of Hapag-Lloyd.
   Shipping revenue rose by 5 percent in the first nine months of 2002, to 1.8 billion euros ($2.1 billion).
   In the third quarter, the profit of Hapag-Lloyd’s shipping business more than doubled, increasing to 81 million euros ($96 million), from 29 million euros in the third quarter of 2002. Third-quarter revenue from shipping was up 13 percent, to 648 million euros ($771 million), from 572 million euros in the same quarter of 2002.
   Hapag-Lloyd Container Linie carried 549,000 TEUs in the third quarter, 15 percent more than a year earlier, and reported higher average freight rates in the major east/west shipping regions. The carrier also reduced its cargo transshipment and land-based transport costs.
   “In the third quarter… the container shipping business was characterized by strong demand for transport on east/west transport routes and further improvement in freight rates on the North Atlantic, transpacific and European/Asian routes,” Tui said in a statement. However, it also reported the persistent weakness of South America and adverse freight rates in that region.
   Tui said the improvement in earnings from shipping was adversely affected by increases in fuel costs and the depreciation of the U.S. dollar against the euro.
   Tui reported lower profits from its non-shipping, logistics activities. Those businesses, operated under the names VTG-Lehnkering and Algeco, generated a third-quarter profit of 18 million euros ($21 million), down from 23 million euros in the same quarter of 2002.