Maritime News Update Week 45/2018

Hapag-Lloyd Cautiously Optimistic for the Rest of 2018

German container shipping line Hapag-Lloyd delivered improved earnings in the period ended September 30, 2018, amid a recovery of freight rates and a significant increase in transport volume.

For the third quarter of the year, the company witnessed a significant improvement in its net profit, which reached EUR 113.4 million, compared to EUR 51.8 million reported in the same period of 2017.

Revenues for the third quarter was also up at EUR 3.03 billion, against EUR 2.79 billion seen a year earlier.

For the first nine months of 2018, the company’s net profit reached EUR 12.5 million, being roughly on a par with EUR 9.1 million as seen in the nine-month result of 2017, while revenues stood at EUR 8.4 billion, rising from EUR 7.3 billion.

Contributing to this development in revenues was a 27 percent increase in transport volume, which rose to 8,900 TTEU in the nine-month period from 7,029 TTEU seen in the corresponding period a year earlier. Hapag-Lloyd said that this increase resulted from the merger with United Arab Shipping Company Ltd. (UASC).

The average freight rate decreased to 1,032 USD/TEU, which is below the prior-year level of 1,068 USD/TEU. On a pro forma basis and when compared to the combined business of Hapag-Lloyd and UASC in the nine-month period, the transport volume is up 5.5 percent and the average freight rate is up 1.4 percent.

“Higher transport volumes, a better utilisation of our ships and the synergies from the recent merger with UASC have enabled us to partially offset rising operational costs. In addition, the average freight rate improved during the peak season in important trades,” Rolf Habben Jansen, CEO of Hapag-Lloyd.

“Despite the persistent upwards pressure on the operational costs in various parts of our business, we remain cautiously optimistic for the rest of the year,” he added.

The company informed that the developments in fuel costs and freight rates are in line with the forecast for 2018 as a whole, which was adjusted in late June 2018.

CMA CGM Wraps Up Acquisition of Containerships

French liner shipping major CMA CGM Group completed today the acquisition of Finland-based container-transportation and logistics company Containerships.

Founded in 1966, Containerships specializes in Intra-European containerized trade with 690 employees

The announcement is being made on the back of the green light the merger obtained from the European Commission on October 22.

The combination results in Container Finance’s entire container logistics operations including Containerships, Multi-link Terminals and CD Holding integrating to CMA CGM’s intra-regional market offering in Europe and Mediterranean area.

With Containerships, CMA CGM adds four 1,400 TEU vessels powered by liquefied natural gas to its fleet.

These vessels will be followed, from 2020 onwards, by the entry into service of the nine 22,000 TEU and two 1,400 TEU containerships ordered by the CMA CGM Group.

In addition, Containerships has a fleet of LNG-powered trucks, enabling the CMA CGM Group to offer LNG throughout the transport cycle.

SITC Orders More Feeders from Yangzijiang

Hong Kong-based shipping firm SITC International Holdings has increased the number of feeders on order at China’s Yangzijiang Shipbuilding

Through its subsidiary, SITC Shipowning, the company signed shipbuilding deals for three container vessels on November 2.

SITC International informed that it would pay a total of USD 87.9 million for the three units, which would each have a minimum container intake of around 2,700 TEU.

The feeders are scheduled for delivery to their owner in October 2020, December 2020 and February 2021, respectively.

SITC International said that the aggregate consideration under the shipbuilding contracts will be paid through internal resources and/or external financing.

The company opted for the additional vessels to meet the increase in demand for its services.

In mid-2018, SITC International  ordered two feeder containerships Yangzijiang Shipbuilding. AT the time, the shipowner said it would pay USD 58 million for the boxship duo. These units are scheduled for delivery in September and November 2020, respectively.

Vinalines and Erria extend cooperation

Vinalines and Erria have today signed a MOU at the headquarter of the Danish Shipowners´ Association in Copenhagen, Denmark.

Vinalines & Erria will, with the agreement, extend the existing cooperation in North Vietnam to include the new port project in Dinh Vu, which is currently under development. When fully finished, the port will offer 3 berths with space for both container and bulk ships.

Erria Container Services (ECS) will collaborate with Vinalines to provide container repair services and other related logistics and depot services such as reefer monitoring, mobile repair, etc. ECS will also assist with commercializing barge operation from Dinh Vu to other ports and ICDs in North Vietnam, which ECS has experience with from South Vietnam.

ECS is currently in collaboration with Vinalines in the North-Vietnamese port of Haiphong, where ECS provides container repair and maintenance services to shipping lines and leasing companies.

Vinalines: Vinalines is a leading, Vietnamese state-owned shipping company and port operator who operates a large fleet of bulk, tank and container ships in both domestic and international trades. Within the port operation, Vinalines is both alone and together with JV partners operator of bulk and container terminals in all Vietnamese ports. Partners include Singapore-based PSA, US SSA and Danish AP Moller/APMT.

Erria: Founded in 1992, Erria is today a maritime `one stop shop` with internationally offered services from departments in several countries around the world. Activities within Ship Management, Container Services, Offshore Personal Services and Container Sales. Listed on NASDAQ First North Copenhagen in 2007.

Source: World Maritime News, Vietnam Shipping Gazette