Hapag-Lloyd stays in the black, but fourth-quarter operating result slumps

By Mike Wackett

Hapag-Lloyd recorded a net profit of $28 million in the fourth quarter of 2017, due in part to a windfall of $21 million of netted pool revenue from its vessel sharing agreement within THE Alliance. This surplus, together with a profit of $56 million in Q3, overcame the loss the carrier suffered in the first six months of the year to give a positive full-year result of $35 million, compared with a loss of $103 million in 2016.

However, Hapag-Lloyd saw its operating result dive by 27 per cent between Q3 and Q4 to $137 million as volumes weakened seasonally and freight rates came under pressure. With the UASC business only included within the accounts since May, it is difficult to compare full-year turnover and volumes for the merged entity, which were up by 32 per cent to $11.3 billion and up by 29 per cent to 9.8 million TEUs respectively. (more…)

OOCL enjoys a busier and more profitable first quarter than its new owner

By Mike Wackett

Ahead of its acquisition by COSCO, ocean carrier OOCL’s carryings jumped 7.5 per cent year on year, to 1.58 million TEUs, in the first quarter, while revenue surged 16 per cent, to $1.38 billion. According to the operational numbers at least, Hong Kong-based OOCL enjoyed a better and more profitable quarter than its suitor.

On the transpacific tradelane, its second-biggest trading region after intra-Asia/Australasia, OOCL achieved liftings growth of 16.3 per cent, to 457,461 TEUs, with revenue improving by 19.2 per cent, to $529 million. (more…)

Restructured ZIM sails back into the black, but final quarter disappointed

By Mike Wackett

Israeli niche trades container line Zim recorded an adjusted net profit of $50 million for 2017, following a loss of $150 million in 2016 – but the carrier slipped back into the red in the final quarter. Zim’s total revenue last year was up 17 per cent on 2016 to $2.98 billion, as it loaded 8 per cent more containers on its ships to reach 2.6 million TEUs. Operating profit (EBITDA) was $246 million, versus a negative of $50 million in 2016. (more…)

CMA CGM seizes title of most profitable container line with 2017 performance

By Mike Wackett

CMA CGM recorded a net profit for 2017 of $701 million to easily outperform its peers and wrench the mantle as the industry’s most profitable global container line from Maersk Line. And the French carrier’s order of nine LNG-powered 22,000 TEU ultra-large container vessels (ULCVs), confirmed in November, is a bold step to out-think on cost competitiveness its Danish rival, currently preoccupied with its own restructuring. (more…)

As IMO targets are questioned, what is the truth about shipping emissions?

By Alexander Whiteman

So what is the truth about shipping emissions?

The IMO has decided to cut 2008 levels of greenhouse gas emissions (GHGs) by at least 50 per cent by 2050 – but not all in the industry are convinced. A recent comment piece in Splash 24/7, by First International Chairman Paul Slater, questioned shipping’s role in climate change, calling the IMO’s proposed plan “fatuous, unrealistic and unnecessary”. He wrote: “The CO2 issue has been grossly overstated…It has been shown that [shipping’s] CO2 is absorbed by seawater without damaging results”. He also claimed to The Loadstar that there was no evidence that polar ice was melting. (more…)