Hapag-Lloyd looks to cut costs further

German container line Hapag-Lloyd has hired international consultancy Roland Berger to find further cost reductions.
"As there are no reliable forecasts concerning future developments, Hapag-Lloyd is thinking about options to secure its future should the outlook of the container shipping industry not improve," said Hapag-Lloyd spokesman Klaus Heims.

Hapag-Lloyd has already started a restructuring programme and announced cost savings of $700m for this year. The company is under pressure from its owners, German tourism group Tui and the Albert Ballin consortium.
In particular, consortium member and logistics tycoon Klaus-Michael K¨¹hne has repeatedly called for more extensive cost cuts.

"The situation in the container business worldwide remains negative," Mr Heims said. "Hapag-Lloyd cannot escape from this trend."

Shipping sources suggested that Hapag-Lloyd will have to ask the Albert Ballin consortium for fresh capital. The company has already received a loan of more than £¿1bn from its former sole owner Tui.

The situation at Germany's largest container line was "under control¡", Mr Heims said. He added that Hapag-Lloyd believed that the rate increases for the peak season, which several container lines have advertised, could be realised.
Hapag-Lloyd announced a rise in freight rates for services from Asia to northern Europe and the western Mediterranean by $500 per teu with effect from mid-June.

The company also said that it wants to implement a peak season surcharge of $150 per teu for the period August 1 to October 31

 

Source: Port News