Hapag-Lloyd’s Mack says integration with CP complete

Hapag-LloydÆs Mack says integration with CP complete 'We’re back — be careful,' was the good-humored message Rudy Mack, president of Hapag-Lloyd (America), offered his competition last night at the annual dinner of the New York-New Jersey Foreign Freight Forwarders and Brokers Association Inc. where he was honored as 'person of the year.'
   Mack said that his company would be more focused outward after a year in which much effort was devoted to integrating Hapag-Lloyd with CP Ships, the company it acquired in 2005.
   Mack noted that the size of the organization he manages has grown from 540 to 1,360, and that the company is now managing three times as many TEUs in the past. Integration has been a particularly big job in North America because of CP Ships' focus on Canada where it was formed.
   Mack said he expected volume growth of about 5 percent to 8 percent in the coming year, and that outbound cargo would be helped by the weakening dollar. But he noted that most outbound U.S. cargoes are low-value commodities.
   He said steamship lines will continue to face challenges because of rising costs from fuel, security and inland transportation, and said they should focus more on long term goals like fulfilling customers' needs and less on 100 percent utilization of ships.
   Cooperation in the industry was essential, particularly because of the increased focus on security, and he suggested that forwarders and custom brokers association should become a part of the World Shipping Council, a group that represents carriers.