HAMBURG SUD, the 13th biggest container shipping company in the world, posted 3.9 per cent year-on-year decline in revenue to EUR5.3 billion (US$7.3 billion) in 2013, which the company blamed on overcapacity dragging down freight rates.
"We do not yet expect a sustained recovery of container liner services over the next year. This is mainly due to continuing increases in overcapacity," said a statement accompanying the results.
The privately-owned Germany company, which reveals little in its results, said its annual throughput in container volume increased one per cent to 3.3 million TEI.
Rates came under particular pressure on the Asia-South America services, and there was an "unsatisfactory development of activities" in the Mediterranean and the service between Europe, India and Pakistan.
"Again, available global slot capacity outpaced container transport volume as deliveries continue to exceed the level of scrappage, which also increased," it said.
"As a consequence of the continuing overcapacity, freight rates in most trades remained under pressure or declined still further."
Over the course of 2013, rates for most services fell back to a level that is "wholly insufficient in light of the high level of investment, operating costs for reefer containers, and onboard equipment".
At the end of the year, Hamburg Sud's fleet stood at 154 ships, 45 of which were owned by the group. The available slot capacity in liner services increased six per cent to 457,000 TEU, and the average ship capacity by seven per cent to 4,437 TEU.
At the end of 2013, the order-book for group-owned ships to be delivered in 2014/2015 was around 78,000 TEU. The total number of containers remained unchanged year on year at 458,000.
Said the company statement: "Economic conditions should improve in 2014. According to the International Monetary Fund (IMF), the global economy should grow by 3.7 per cent, and world trade by 4.5 per cent, with the US economy in particular set to become more dynamic.
"In the eurozone, all signs point to some countries coming out of recession, even if high public deficits continue to be a cause of concern in many countries. Despite positive impulses from the soccer world championships, there is no sign of a sustained solution to Brazil's economic issues. Growth in the Chinese economy will also be of decisive importance over the coming year," the statement said.
WORLD SHIPPING
03 April 2014 - 03:11
Hamburg Sud revenue down 3.9pc to US$7.3 billion, no recovery expected
HAMBURG SUD, the 13th biggest container shipping company in the world, posted 3.9 per cent year-on-year decline in revenue to EUR5.3 billion (US$7.3 billion) in 2013, which the company blamed on overcapacity dragging down freight rates.
WORLD SHIPPING
03 April 2014 - 03:11
Hamburg Sud revenue down 3.9pc to US$7.3 billion, no recovery expected
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