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Hapag-Lloyd reports record ?10 profit

Hapag-Lloyd reports record Æ10 profit

   Hapag-Lloyd said it had a record year in 2010 in terms of profitability.

   In its fiscal year    the German carrier said it had operating earnings before interest and taxes (EBIT) of 583 million euros ($807 million) compared to a 603 million-euro loss in 2009. Operating earnings before depreciation and amortization (EBITDA) total 904 million euros ($1.2 billion) in 2010.

   Revenue for the year were 6.2 billion euros ($8.5 billion), 39 percent more than in 2009.

   “Hapag-Lloyd was able to capitalize on the positive industry dynamics, leading to a record year in terms of profitability. The overall positive performance was supported by a stronger than expected recovery in global economy and world trade and an overall positive business environment in 2010,” the company said.

   The company said it carried 4.95 million TEUs in 2010, a 7 percent increase from 2009.

   By trade lane:

   ' Atlantic volumes were up 8 percent to 1.14 million TEUs.

   ' Latin America climbed 18 percent to 1.08 million TEUs.

   ' Far East rose 6 percent to 1.11 million TEUs.

   ' Transpacific improved 11 percent to 1.09 million TEUs.

   Trade in the Australasian trade lane was down 18 percent to 532,000 TEUs, as the company said it “decided not to accept unprofitable business in order to sustain margins on that trade.”

   Average freight rates showed a strong recovery from low levels in 2009, Hapag-Lloyd said. After falling 21 percent from 2008 to 2009, average freight rates rebounded 25 percent in 2010 to $1,569 per TEU in 2010.