GERMAN shipping giant Hapag-Lloyd posted a 15 per cent decline in pre-tax third quarter profit to EUR61.2 million (US$82 million), drawn on revenues of EUR1.6 bullion down five per cent.
The decline was attributed to adverse exchange rates and weak demand. "The freight rate developments in the third quarter, the peak season for the liner shipping industry, were very disappointing," said CEO Michael Behrendt.
Container shipping companies are grappling with overcapacity in a faltering global economy, said the company.
Hapag-Lloyd's average freight rate in the third quarter declined 11.5 per cent to $1,476 per TEU. The weak dollar had a negative impact on revenues, it added.
Singaporean rival Neptune Orient Lines said last month its container shipping arm, APL, suffered a their quarter net profit decline of 60 per cent year on year to $20 million, while its revenue dropped to the lowest in nearly four years on lower freight rates and volume.
Maersk Line's quarterly results expected imminently is forecast to publish a 2.7 per cent decline in operating profit to EUR532 million, according to a Reuters poll.
WORLD SHIPPING
13 November 2013 - 22:56
Hapag posts quarterly profit decline to US$82 million, sales off 5pc
GERMAN shipping giant Hapag-Lloyd posted a 15 per cent decline in pre-tax third quarter profit to EUR61.2 million (US$82 million), drawn on revenues of EUR1.6 bullion down five per cent.
WORLD SHIPPING
13 November 2013 - 22:56
Hapag posts quarterly profit decline to US$82 million, sales off 5pc
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