HHLA takes a beating from blank sailings
GERMANY's Hamburger Hafen und Logistik AG (HHLA) has posted significant falls in volume and revenue in the first half of the year brought about by the huge slide in global economic activity and the resulting downturn due to the coronavirus pandemic
23 August 2020 - 19:00
In the container segment, throughput at HHLA's container terminals declined by 11 per cent to 3.35 million TEU. Of this total, 3.06 million TEU was handled at the three Hamburg terminals, representing a 12 per cent decrease, mainly due to blank sailings as a result of Covid-19.
The blank sailings led to a considerable fall in cargo volumes from the Far East while feeder traffic with the Baltic region decreased markedly and could not be offset by growth in the German and British shipping regions.
Revenue in the container segment decreased by 10 per cent to Euro363 million (US$430 million), primarily due to the decreases in volume caused by the coronavirus pandemic. Average revenue per container handled at the quayside rose by 2 per cent.
The reduction in volumes led the operating result (EBIT) to drop by 49 per cent to Euro37 million, reports UK's Container Management.
Angela Titzrath, chairwoman of HHLA's executive board, said: 'The measures imposed in the second quarter in order to contain the coronavirus pandemic have posed unprecedented challenges for society and business. As a company which forms part of the critical logistics chain infrastructure, we have nonetheless consistently upheld our responsibility and reliably maintained supply routes in Germany and Europe.
'By means of prudent cost reductions and restraint in our capital expenditure, we have sought to limit the strong impact of the crisis on our performance and to be ready once the situation eases again. We currently envisage a gradual recovery over the second half of the year.'
Across all segments, the group's revenue declined by 9 per cent to Euro628 million, with the operating result plummeting by 52 per cent to Euro59 million.
In the intermodal segment, container transport decreased by 8 per cent to 718,000 TEU, with a marked decline in road transport, largely due to weak growth in the Hamburg region and a persistently challenging market environment.
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