Shipping giant Hapag-Lloyd sees container volumes recovering                

Transport volumes at Hapag-Lloyd, the world’s number five in the industry, were down 3.5% year-on-year. File Picture: David Creedon

German container shipping line Hapag-Lloyd nearly doubled net profit in the first half of 2020 and kept its full-year outlook intact but warned that the coronavirus crisis bears indiscernible risks for its operations.

“We have not put the pandemic behind us. Compared to a normal situation, customers’ booking behaviour is volatile,” chief executive Rolf Habben Jansen said.

Transport volumes at Hapag-Lloyd, the world’s number five in the industry, were down 3.5% year-on-year. 

Mr Habben Jansen said those volumes were recovering but were unlikely to reach their 2019 level this year as economies worldwide have contracted amid lockdowns.

Net profit between January and June soared by 95% to €285m, helped by lower shipping fuel costs in the second quarter.

He said fuel costs remained at that low level after they rose by 4% on the year in the first half due to new environmental fuel regulations that kicked in worldwide on January 1.

The company adjusted capacity due to lower demand and took additional cost-cutting measures as part of its performance safeguarding programme, he said. 

First-half earnings was at €1.17bn, up from €956m in the comparable 2019 period. Analysts think container shipping could benefit from the resumption of more Chinese business activities and a tentative recovery. 

Reuters