Hapag-Lloyd increases freight rate, volume and revenue in 2012
Hapag-Lloyd was able to increase the freight rate, transport volume and revenue in the past financial year, the company states in its press release. Despite the challenging economic environment, Hapag-Lloyd achieved an EBITDA of EUR 335 million and an EBIT of EUR 26 million in 2012, allowing it to once again do well compared with its industry peers. The average freight rate in 2012 saw a year-on-year increase of 3.2% to USD 1,581/TEU. Transport volume rose by 1.1% to approximately 5.3 million TEU. Revenue reached EUR 6.84 billion and was 12.1% higher than in the previous year also due to exchange rate movements. The Group net result came to EUR -128 million.
The newly rising energy costs, of which bunker is the largest component, burdened the liner shipping sector also in 2012 again. Bunker prices soared to record levels in excess of USD 720/tonne in the first half of 2012 in particular. Hapag-Lloyd had to spend 9% more last year with an average bunker price of USD 660/tonne, after a 34% increase the year before. Overall, transport expenses in 2012 were up more than EUR 900 million over the previous year.
The rate increases successfully implemented in the first half of the year – amounting to more than 12% between January and July at Hapag-Lloyd – deteriorated again in the second half of the year as a result of weaker demand.
According to the press release, Hapag-Lloyd was able to limit the negative impact of the difficult market environment thanks to successful yield management, strict cost discipline and maintaining a competitive fleet comprising the latest newbuildings with a capacity of 13,200 TEU.
The successful launch of the new G6 Alliance was another milestone in 2012, founded by Hapag-Lloyd together with five Asian partner shipping companies for the Far East trade.
Even after EUR 791 million of investment last year in own ships and containers to boost maritime assets, Hapag-Lloyd had a very solid balance sheet with an equity ratio of 45.5%. With liquidity reserves of over EUR 630 million (including unused credit lines as at 31 December), the Company is securely positioned for the future.