Hapag-Lloyd records first quarter profit

The German ocean carrier attributed the nearly 44% jump in revenues primarily to its acquisition of Chilean carrier CSAV.    Hapag-Lloyd reported first quarter profits of 128.2 million euros ($145.1 million), compared with a loss of 119.1 million euros in the same period last year. Revenues at the German ocean carrier were up 43.8 percent to 2.3 billion euros in the first quarter, compared with 1.6 billion euro in the first quarter of 2014.
   Hapag-Lloyd handled 1.8 million TEUs during the quarter, a 28.6 percent increase from the first quarter of 2014.
   The company attributed the sharp increase in volumes and revenues primarily to its acquisition of Chilean liner CSAV’s container shipping business in December.
   The increase in profit was achieved in a challenging market environment, with an average freight rate in the first quarter of $1,331 per TEU, down $91 per TEU or 6.4 percent from the same period last year, according to a the carrier’s most recent financial statments.
   The company said the drop in the average freight rate was largely a result of the consolidation of CSAV’s container business, which had a lower average freight rate than Hapag-Lloyd. Excluding that effect, freight rates were down just 1.9 percent.
   “This is a solid start to the year, in spite of the continued price pressure in many of the trades,” said Rolf Habben Jansen, CEO of Hapag-Lloyd AG. “This quarter we had support from favorable bunker price and a stronger US dollar, but most importantly this is due to the hard work of all Hapag-Lloyd employees. The results include first synergies from the merger with CSAV’s container business and initial savings from our comprehensive efficiency program.”
   The average bunker consumption price was $377 per ton in the first quarter of 2015, down from $595 per ton a year earlier.
   Hapag-Lloyd said due to exchange rate effects and the consolidation of CSAV’s container shipping activities, transport expenses increased by 436 million euros year-over-year to 1.84 billion euros. Once translated into US dollars, they were actually $207 lower per transported standard container than in the first quarter of 2014.