GERMANY's Hamburg Sud, the world's 12th biggest container shipping line, has declared a 2012 revenue increase of 16 per cent year on year to EUR4.8 billion (US$6.17 billion), but declined to reveal profit or loss figures.
The company handled four per cent more containers in 2012 year on year to 3.3 million TEU, describing the performance as "roughly in line with market growth." When breakbulk is added to containers, revenue rose 15 per cent to EUR5.5 billion year on year.
"Europe-America and Far East services contributed in particular to this growth. Pleasing performance was seen, too, in some of the inter-America services. By contrast, Mediterranean operations, and in part the Pacific services, fell below expectations," said a company statement.
"Freight rates in the mix of all services were held on a par with the previous year. Bunker costs and other operational costs went on rising. Only the chartering-in of vessels afforded relief given the depressed charter market," said the carrier's statement.
Hamburg Sud is part of the family-owned Oetker conglomerate, which has interests in food and beverage, banking, insurance, publishing and hotel industries.
Last year, the company focused on transshipment hubs in Cartagena, Colombia, and Tanger, Morocco. Customers were offered additional connections between South America, Europe and the Middle East.
"On the back of constant freight rates and continuing cost pressure in the operational area in the last financial year, Hamburg Sud's result was marginally in excess of plan. An improvement on the previous year was also achieved, due mainly to successful capacity management. However, it is as yet not possible to speak of a satisfactory earnings level," the carrier said.
"The global order book runs to 20 per cent of tonnage in operation. This figure is still over 40 per cent in late 2008. Nonetheless, global slot capacity will rise seven per cent even though increased scrappings are expected because the ships ordered before 2010 have higher fuel consumption than newer units. The trend to very large tonnage is continuing," said the company statement.
"Capital spending, for the most part in the form of deposits and final payments on ship newbuildings, was roughly 48 per cent lower in 2012 than in the previous year and was financed entirely from operational cash flow."
The shipping line cut three ships from the fleet, which now totals 104, but new bigger ships increased capacity nine per cent. New vessels were 7,100 TEUers, put into service during 2012.
Six bigger 9,600-TEU ships, ordered in 2011, will be delivered in this year and next and deployed in the Asia/Europe-South America trades. Hamburg Sud will also take delivery of four 3,800-TEU newbuildings to be deployed in Brazilian cabotage run by its Alianca unit.
For its 2013 outlook, Hamburg Sud said: "It is to be assumed that freight rates will remain under pressure in the current year and liner shipping be characterised by further intense earnings volatility."
WORLD SHIPPING
16 May 2013 - 22:52
Hamburg Sud reports 16pc increase in 2012 revenue to US$6.17 billion
GERMANY's Hamburg Sud, the world's 12th biggest container shipping line, has declared a 2012 revenue increase of 16 per cent year on year to EUR4.8 billion (US$6.17 billion),
WORLD SHIPPING
16 May 2013 - 22:52
Hamburg Sud reports 16pc increase in 2012 revenue to US$6.17 billion
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