Hapag-Lloyd

Service cancellations

THE Alliance to withdraw FE5 service

THE Alliance carriers (Hapag-Lloyd, HMM, ONE and Yang Ming) will withdraw the Asia-North Europe FE5 service from November 2023. The FE5 is the second smallest of the 5 Asia-North Europe loops operated by THE Alliance and currently deploys 10 ships of 13,800-14,100 teu calling at Laem Chabang, Cai Mep, Singapore, Colombo, Rotterdam, Hamburg, Antwerp, London Gateway, Jeddah, Singapore, Laem Chabang, with 1 sailing blanked on an 11 week round trip rotation. The last westbound sailing is scheduled

Service cancellations

THE Alliance to withdraw EC4 service to US East Coast

THE Alliance carriers (Hapag-Lloyd, HMM, ONE and Yang Ming) will withdraw the EC4 service from November 2023. The EC4 is 1 of the 5 FE-US East Coast services that THE Alliance currently operates. The last sailing will be made by the 14,078 teu YM WIND from Hong Kong on 6 November 2023. The service calls at Kaohsiung, Xiamen, Hong Kong, Yantian, Cai Mep, Singapore, Suez Canal, Norfolk, Savannah, Charleston, New York, Suez Canal, Singapore, Kaohsiung. The service currently deploys 11 ships of 13,

Services

Hapag-Lloyd/Feedertech updates India-Gulf (IG1)/Arabian Gulf-India (AGIS) service

Hapag-Lloyd and Feedertech will update their jointly operated India-Gulf 1 (IG1)/Arabian Gulf-India (AGIS) service with a new rotation calling at Jebel Ali, Karachi, Kandla, Nhava Sheva, Jebel Ali, Dammam, Shuaiba, Umm Qasr, Jebel Ali. The revised rotation will replace the call at Mundra with new calls at Nhava Sheva and Kandla. It will continue to deploy 4 ships of 2,700 to 4,200 teu, with 3 units from Hapag-Lloyd and 1 unit from Feedertech. Revised rotation of the India-Gulf (IG1)/Arabian G

Companies

Hapag Lloyd earnings fell but lead peers on EBIT margin and RoE

Hapag Lloyd reported before market open on 10 August. Hapag Lloyd’s 2Q results suffered second biggest a bigger QoQ fall in EBIT, following ONE’s 67% as Transatlantic head haul freight rates fell by 50% (Source: Xeneta) while CCFI fell only 7% during 2Q. However, Hapag Lloyd remain a leader in the EBIT margin among its container liner peers. What may have been overlooked however is that Hapag Lloyd has been leading its peers in delivering RoE (return on equity) on more efficient capital managem

Ports

Hapag-Lloyd completes acquisiton of SAAM

Hapag-Lloyd has completed the acquisition of SAAM's port and logistics operations for a total price of $995m on 1 August 2023 after securing relevant regulatory approvals. The deal was first announced on 4 October 2022 with a binding agreement signed on 6 October 2022. The transaction includes interests in 1o terminals in Iquique, Antofagasta, San Antonio, San Vicente and Corral (Chile), Port Everglades (United States / Florida), Mazatlán (Mexico), Buenavista (Colombia), Guayaquil (Ecuador) and

Ships

Charter rates remain divergent

Charter rates continue to diverge, remaining firm for the larger ships in the Panamax and larger segments while softening in the smaller sizes of below 3,000 teu. Demand in the larger sizes have been surprisingly resilient despite the ongoing weakness in the freight markets. All prompt vessels of 5,000 teu and above have been snatched up, with the tight supply to persist until the end of the year. But the supply-demand balance for smaller ships have started to weaken, with a significant number

Financials

Main carriers liftings drop for 7th consecutive quarter

Container liftings for main carriers fell 6.8% YoY in 1Q 2023, accelerating from the 6.6% YoY fall in 4Q. All  9 of the main carriers recorded volume reductions, with Zim and Maersk recording the largest drops. The aggregate liftings of the 9 carriers in 1Q 2023 were even lower than the 2Q 2020 level during the first COVID wave. Despite the of the continuous improvement of the vessel turnaround time on the easing of port congestion, liner’s volume yield (liftings per slot) has continued to fall

Companies

Hapag-Lloyd Took Lead in EBIT Margin Race

Hapag Lloyd reported before European market open today (11 May) where net profit dropped 38% QoQ and 57% YoY. The drop should be expected but fared better than the liner peers that have reported so far. Hapag Lloyd's average freight rates fell only 28% YoY versus CCFI's 68% YoY, benefited by Hapag Lloyd's higher mix in Transatlantic trade, which is not a composite in the CCFI. Hapag Lloyd EBIT at 31% in 1Q23, is better than all the other peers reported so far.

Services

Hapag-Lloyd joins Wan Hai on FE-USEC 'AA7' service

Hapag-Lloyd will join Wan Hai as a vessel operator on the new FE-US East Coast 'AA7' service that will replace the existing service that was operated solely by Wan Hai starting from 26 April 2023. The new AA7  service will deploy 12 ships of 4,500 to 13,500 teu, with 4 ships from Hapag-Lloyd and 8 ships from Wan Hai. The smaller ships of 4,500 to 6,500 teu that Wan Hai currently operates will be gradually replaced over 2023 with larger ships of 7,500 to 13,500 teu including the new Wan Hai A-cl

Services

Hapag-Lloyd to launch WCSA Feeder 4

Hapag-Lloyd will launch a new West Coast South America Feeder 4/WCSA Feeder 4 (WS4) service that connects Peru and Chile. The WS4 service will start from 5 June 2023 and call at Callao, Iquique, Puerto Angamos, Arica, Callao with the 1,930 teu newbuilding CAPE BRUNO. The service will turn in 2 weeks, with a second ship to join the service later in June.

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