Tuesday, August 14, 2012

Hapag-Lloyd lost $9 mil in Q2; cites higher fuel costs

German container-shipping line Hapag-Lloyd AG, posted a narrower second-quarter loss of $9 million over the same period last year, while operating profit rose 18 percent to $38 million.

“High bunker prices in particular caused our expenses to increase dramatically -- they are by far the biggest cost factor for our business,” said the shipping company’s Chief Executive Officer Michael Behrendt in a statement.

“Further rate increases are crucial to compensate for these elevated external costs. The cargo on board our vessels has to cover the cost of transportation,” Behrendt said.

Hapag-Lloyd said its average fuel price increased 14 percent to $694 per ton.

The shipping line reported its average freight rate for the quarter increased 7.4 percent to $1,594 over the first quarter of 2012, and up 4.1 percent over second quarter of 2011.

For the full Businessweek story: www.businessweek.com

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