GERMANY's Hamburg Sud has posted a seven per cent year-on-year increase in revenue to EUR4.8 billion (US$6.3 billion), largely attributable to nine per cent growth in its container business.

Container volume increased to 3.1 million TEU in 2011. Asian services grew well and satisfactory performances were experienced in inter-America and Pacific services. But Mediterranean operations "fell below expectations as did Brazilian exports", said the company.

Hamburg Sud said business "was not satisfactory in 2011." The company experienced six per cent growth to EUR4.2 billion because of a weak US dollar in 2011, "a gain out of the proportion to shipment volume".

"It remains to be seen whether the recovery of freight rates will be lasting, or whether drops will recur, especially with the end of seasonal trade on the Asia routes," said the statement from the company.

The company said 2011 bunker prices were 37 per cent higher in Rotterdam year on year. Serious challenges also included price increases in cargo handling and road and rail transport.

On the plus side, the carrier said it had added new connections between South America, the Mideast with new calls at Tangiers and at Cartagena in Colombia.

Hamburg Sud also signed a vessel sharing agreement with another shipping company last year, which is to be extended into 2012 on its Europe-eastern Mediterranean service. It also added capacity on promising trade lanes between Europe, India and Pakistan.

Looking ahead, the Germany's second largest container carrier, which also owns the Brazilian shipping company Alianca, said: "Even with a moderately positive development in the world economy and world trade, it will be one or two years before global cargo volume and slot capacity regains equilibrium.

But the company noted that carriers are cutting unprofitable services, idling ships, looking to scrap older ships sooner than expected and may well engage in more slow steaming, which will help trim excess capacity in the market.