Hapag-Lloyd shows overall growth in 2018
By Jordan Williams on 15 March 2019
Hapag-Lloyd experiences higher container transport volumes leading to higher revenues and operating profits

      Leading global liner shipping company Hapag-Lloyd recently reported higher revenues and operating profit in 2018. The company attributes the improvement to higher container transport volumes, steadily improving freight rates in the second half of the year, its merger with United Arab Shipping Company Ltd. (UASC), and cost synergies resulting from the merger.
      Utilizing BlueWater Reporting's Trade Route Splits Report, the chart above displays Hapag-Lloyds top 10 trades in allocated capacity for Dec. 2017 and Dec. 2018. For both years, Hapag-Lloyd has allocated much of their overall capacity to Intra-Europe trades.
      According to the data, the Intra-Europe trade saw a year-over-year capacity growth of 7 percent. Currently, Hapag-Lloyd operates six services calling the Intra-Europe trade. These services include the PEX, SDX, REX, NBS, BAX and GTE. Hapag-Lloyd also purchases slots on thirty different Intra-Europe services.
      In distant second, the Asia-Europe trade saw an increase in capacity by 8 percent from 24,909 TEUs in Dec. 2017 to 26,891 TEUs in Dec. 2018. The Asia-Europe trade is currently called by four Hapag-Lloyd operated services. These include THE Alliance’s FE2, FE4, FE5 and the EAX/NEWMO which is jointly operated with CMA CGM. The Europe-Asia portion of the trade follows closely but remained even with less than 1 percent growth.
      Five out of the seven remaining trades listed in the chart have experienced year-over-year growth. The North America to and from Asia, Intra-Asia, Intra-South American West Coast and Intra-Caribbean trades have all seen an increase in capacity since Dec. 2017. Out of these trades, the Intra-Asia trade has seen the largest jump, increasing from 16,202 TEUs to 20,686 TEUs, a 28-percent increase.
      Trades that saw a decrease in capacity for Hapag-Lloyd are the Mid-East to Indian Subcontinent and Mid-East to Asia. The largest decrease has been a 27-percent drop in capacity between Mid-East to Asia, from 14,085 TEUs to 10,313 TEUs.
      Overall, total allocated capacity for Hapag- Lloyd’s top 10 trades increased by 7 percent year-over-year, from 231,516 TEUs to 246,568 TEUs, a 15,052 TEU jump. According to BlueWater's Carrier Dashboard, Hapag-Lloyd has 203 vessels in operation, totaling 1,479,576 TEUs of deployed capacity.