Shipping major Hapag-Lloyd has started the year on a positive note, despite the coronavirus pandemic, according to chief executive officer Rolf Habben Jansen.
“Higher transport volumes and better freight rates have boosted our revenues. The financial result is however below the first quarter of the previous year as we faced higher bunker prices after the new IMO 2020 rules on 1 January and we had a significant negative bunker stock valuation after the decline in crude oil prices at the end of the first quarter,” he said
“Revenues in the first quarter increased by around 6% to USD 3.7 billion - which can primarily be attributed to a 4.3% increase in transport volumes to more than 3 million TEUs, and an improved average freight rate of USD 1 094 per TEU,” he added.
The rest of the year will however bring significant challenges. “Although we were able to pick up a bit of tailwind at the beginning of the year, we anticipate that the coronavirus pandemic will have very significant impact in the second quarter. Our main focus will continue to be the safety and well-being of our employees as well as the supply chains of our customers. We have taken a wide range of measures designed to save an amount in the mid-triple-digit million range to safeguard our profitability and liquidity. We are adjusting our service network to the lower demand and seeking savings in all cost categories, from terminal, transport, equipment and network costs to overheads.”