Senator Lines sees positive return in 2007
German ocean carrier Senator Lines, majority owned by Korea’s Hanjin Shipping, today said its operating income returned to positive figures last year after a “painful 2006.”
The Bremen-based company reported an operating result of $14 million for 2007 but declined to provide comparable figures for the year before.
Hans-Hermann Mohr, Senator Lines’ chief executive officer, said the recovery was due to its restructuring program, Concept 2007, which brought job cuts, office closures and reduced Asia/Europe offerings.
“This restructuring, implemented by the end of a painful 2006 for all container lines, has enabled us to move back into black figures,” he said.
“With our centralized lines management and the lean company structure, offering a fast and effective decision process, we can quickly react to new developments and trends. In the short term, Senator will be focusing on the stabilization of the business and financial structure and maintaining its market position and business.”
The carrier said last year it improved its average load factor last year on nearly all of its 14 liner services. It said high load factors were maintained on westbound traffic, while average utilization of eastbound voyages was reportedly up 9 percent.
Mark Ehlers, director of operational management, said the board is confident of the future prospects despite “mixed” market prospects and the escalating bunker price. “This scenario influences our forecasts for the year-end results 2008 significantly even though our first quarter figures have been very positive.”
Jens Philippi, director of commercial management, said the company is aiming towards growth in the mid and long term. “The focus will be laid on the expansion of competitive new niche lanes and businesses in order to achieve a better-balanced business portfolio.” ' Simon Heaney