HAMBURG Sud management is looking at measures to drastically reduce its outgoings, after Germany's number two container shipping line turned in sub par performance disappointing analysts' expectations.
Hamburg Sud felt the pinch from a decline in freight rates and the depreciation of the dollar against the euro.
"Given the modest market growth and operational problems in the congested ports of Brazil, Hamburg Sud, together with its Brazilian unit Alianaa, increased its volume in the liner business by one per cent year on year to 3.3 million TEU," said the parent company Oetker Group.
The carrier's operations in the Mediterranean and the Indian sub-continent came particularly under fire from general partner Richard Oetker.
Revenue for the 2013-2014 fiscal year fell four per cent to EUR5.3 billion (US$7.2 billion).
Mr Oetker insisted that its shipping operations, which also include Alianaa and Alianaa Bulk of Brazil, Rudolf A Oetker and Furness Withy Charterin, had held their own in a difficult environment, reported Lloyd's List.
"However, owing to the pressure on rates in the Asia-South America routes and to the continued unsatisfactory performance of the Mediterranean activities and the service between Europe and India/Pakistan, the overall result is not yet in line with objectives," said Mr Oekter.
"The breakbulk and product tanker activities did not lead to a positive result in 2013 either, and were roughly on a par with the previous year's level."
Hamburg Sud plans to expand its activities in core routes to and from South America and will add to its network where possible.
WORLD SHIPPING
23 June 2014 - 06:21
Hamburg Sud struggles to perform satisfactorily through cost cutting
HAMBURG Sud management is looking at measures to drastically reduce its outgoings, after Germany's number two container shipping line turned in sub par performance disappointing analysts' expectations.
WORLD SHIPPING
23 June 2014 - 06:21
Hamburg Sud struggles to perform satisfactorily through cost cutting
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