GERMANY's biggest shipping line, Hapag-Lloyd, has cut 23 ships from service by laying them up or returning chartered vessels, reports Singapore's Splash 24/7.
Speaking with journalists in Hamburg for the first time since November's muted IPO, Hapag Lloyd CEO Rolf Habben said the line had cut its operating fleet from 198 ships to 175 since autumn. Its fleet capacity has shrunk from one million TEU to 945,000 TEU.
Current freight prices do not even cover operating costs, said Rolf Habben Jansen. "It does not make sense to offer capacity, if it only makes losses."
Only transatlantic and transpacific routes are offering any solace at the moment, Mr Habben Jansen said.
The 49-year-old also discussed the ongoing consolidation within the liner trades, noting how CMA CGM had bought NOL and Cosco and China Shipping were merging.
"This will change our industry," he said, referring to likely shake ups in global container alliances.
The consolidation also means Hapag-Lloyd, which merged with Chile's CSAV last year, will slip from fourth to sixth in the global liner rankings.
Mr Habben Jansen did not rule out further acquisitions to bolster the Hamburg line's position. "It would be helpful for us to be even bigger. We are open to opportunities," he said.
The merger with CSAV has brought savings of US$300 million last year, Habben Jansen said, a figure he expects to rise to $400 million this year. This year he expects sales growth of three per cent.
WORLD SHIPPING
15 January 2016 - 21:16
Hapag-Lloyd cuts 23 ships to slash capacity and staunch rate plunge
GERMANY's biggest shipping line, Hapag-Lloyd, has cut 23 ships from service by laying them up or returning chartered vessels,
WORLD SHIPPING
15 January 2016 - 21:16
Hapag-Lloyd cuts 23 ships to slash capacity and staunch rate plunge
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