Hapag-Lloyd posted a first quarter operating profit of US$17.4 million

Germany biggest container shipping line, Hapag-Lloyd, posted a first quarter operating profit of US$17.4 million after a $282 million quarterly loss and a full year loss of $1 billion in 2009, according to the Shipping Gazette.

The news came as German travel giant TUI, the Hapag-Lloyd's largest shareholder with a 43.3 per cent stake, announced its own financial results.

Hapag-Lloyd revenue was up 13.4 per cent to $1.6 billion from $1.42 billion, based on a five per cent increase in container volume and an eight per cent increase in freight rates with another big contribution from cost cutting.

The shipping line went after high paying cargo and volumes increased on Far East and Latin American routes.

TUI, whose exposure to Hapag-Lloyd in equity and loans totals $3.2 billion, expects the carrier to post a full-year profit if the container shipping market continues to improve.

(Source: Transport Weekly)