By Alexander Whiteman

Preliminary full-year 2016 results from Hapag-Lloyd indicate the continuance of the “more for less” theme that characterised the freight sector last year. Despite a 2.7 per cent increase in volumes, from 7.4million TEUs in 2015 to 7.6 million TEUs, and a 12.3 per cent fall in the cost of transport, the carrier reported a 12.5 per cent decline in revenue, down from $9.3 billion to $8.14 billion.

In a statement, the carrier said the downturn was primarily due to significantly lower average freight rates in 2016. Its own average rate fell 15.4 per cent year-on-year, from $1,225 per TEU $1,036 per TEU.

It also reported a full-year dip of 26.9 per cent in EBITDA, down from $879 million to $642 million. However, as with many other companies throughout the logistics sector, there was a fourth-quarter boost in which EBITDA more than doubled (up 60.9 per cent) from $148.5 million in 2015 to $239 million. Final full-year 2016 group financial statements and annual report will be published on 24 March.

Reprinted courtesy of The Loadstar (