HAMBURG SUD REPORTS LOWER RATES, COST CUTS

HAMBURG SUD REPORTS LOWER RATES, COST CUTS    Germany’s Hamburg Sud group, the parent company of Columbus Line, Crowley American Transport, Alianca and other shipping lines, said that its freight rates declined more than anticipated in 2002.
   Freight rates, especially southbound, “have come under far greater pressure than expected and bunker costs have climbed considerably higher than planned,” said Klaus Mewes, chairman of Hamburg Sud. He did not disclose the company’s actual average freight rates.
   “Nevertheless, it has been possible to absorb much of this by means of more cost-effective hardware, improved productivity and general cost-cutting measures,” he added.
   Like other carriers and shippers engaged in the South American trades, Hamburg Sud has been affected by the collapse of the Argentinian economy and the weakness of other countries in the region. In a review of 2002, Mewes cited “the huge economic and political problems of many countries in Latin America.”
   Hamburg Sud’s transport volume fell short of targets in 2002.
   The shipping group reported that its operations in the United States has become “markedly more efficient and cost-effective” during 2002.
   The group has recently ordered six 4,100-TEU containerships for its Europe/South America operations.