Container-ship route diversions — first to avoid the Panama Canal, now to avoid Red Sea chaos — could help offset rate pressure from newbuilding deliveries.
Cargo volumes are holding up, but rising transport capacity is outpacing demand, pushing container shipping rates even lower.
Inflation and economic fallout from the war are curbing demand just as a tidal wave of new ship supply hits the water.
Unprecedented supply-demand imbalances amid the pandemic led to historic dividend payouts by container shipping lines.
Spot ocean shipping rates from Europe to the U.S. held up much longer than trans-Pacific rates. Now they’ve sunk to historic lows.
“Weaker demand and lower freight rates are having a very noticeable impact on our earnings,” said Hapag-Lloyd CEO Rolf Habben Jansen.
The CEO of shipping line Hapag-Lloyd argues that current freight rates are unsustainable and will correct upward over time.
The 14,000-TEU One Stork on Tuesday became the largest container ship to call Jacksonville, Florida.
Quarterly net losses could be around the corner for container lines, but EBITDA will stay high even if carriers dip into the red.
Shipping lines like Hapag-Lloyd have suffered sharp rate falls from the peak, but they’re nowhere near financial distress.
The reversion in spot rates is pulling down contract rates, with a significantly delayed effect on ocean carrier earnings.
German ocean shipping company Hapag-Lloyd said its earnings before interest, taxes, depreciation and amortization jumped by $7.6 billion year over year.
“Terminal and infrastructure investments are a crucial element of our strategic agenda and India is one of our key growth markets,” Hapag-Lloyd CEO Rolf Habben Jansen said.
The blockchain-enabled global platform TradeLens will go offline by the end of the first quarter of 2023.
Ed Aldridge is retiring from CMA CGM America, and Uffe Ostergaard is leaving Hapag-Lloyd.
Earnings for Zim, the world’s 10th largest ocean carrier, peaked in the first quarter and continue to slide as rates fall.
Container shipping fundamentals are not as bad as spot rates imply, says the head of the world’s fifth-largest ocean carrier.
Rolf Habben Jansen, CEO of ocean carrier Hapag-Lloyd, gives his take on the “bullwhip effect,” rates and global trade.
CEO Rolf Habben Jansen said the SM SAAM S.A. acquisition is part of Hapag-Lloyd’s strategy to build “a robust and attractive terminal portfolio.”
Senior executive says “strategic assets along the supply chain are a key part of Hapag-Lloyd’s Strategy 2023.”
