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Second Quarter Profits Proofs Merging with CSAV was Right – Hapag Lloyd cargo service

Hapag Lloyd cargo service managed well in the second quarter which is termed to be toughest phase of the year. It is known from the source that the newly merging decision of Hapag-Lloyd with CSAV was proved to be right decision with profits recorded in second phase of the year. In this challenging second quarter, Hapag-Lloyd recorded profits by adding 29 Euros (37 million dollars) net profit and recorded as 157 million Euros (175 million dollars) plus profits for the half year. Last year in 2014, for the same period, the company has recorded 173 million Euros loss which was before the takeover of Chilean container line CSAV. Hapag Lloyd cargo service is extremely happy to inform that it is going smooth overall the year despite a challenging market environment.  The complete integration of CSAV container services and ship systems into the newly formed Hapag-Lloyd was happened in the second quarter of the year. The company is now expecting additional 100 million dollars to be delivered to synergy savings annually crossing the previous expectation of 300 million dollars by the year 2017.

Hapag-Lloyd is thrown a solid entry in 2015 with satisfying results recorded in first half of the year said by Rolf Habben Jansen, Chief Executive. He said that it is the company results proving their merging decision with CSAV was right and it is to become a significant milestone in the company development. In a teleconference meeting of H1 results, he said that, he was happy with the integration speed of CSAV and total credit was given to the experience gained by Hapag Lloyd cargo service in CP ships takeover deal carried out in 2005. Initially analysts expressed negative results from the merger of CSAV with Hapag Lloyd cargo service forming as the world’s fourth biggest container line as CSAV is under losses. They both opted intermediate steps reducing the combined workspace to 10000 which was 13000 earlier. Although statistical comparisons are difficult, 3.7 million teu is carried by Hapag Lloyd cargo service in the first six months this year. It recorded as 29 percent hike compared to same period last year. But total volumes will be less compared to last year lifting due to adoption of new strategy in cargo selection. He also said that they wanted to improve spot business balance in the market which is highly responsible on the spot market.

Hapag-Lloyd stood aggressive on Asia-Europe route in second quarter with increase in its volumes. It is recorded as 323,000 teu volume expansion compared to 288,000 teu volume recorded in the same period of 2014. This year average revenue per teu is recorded as 966 dollars on trade lane declination whereas, in 2014, it is recorded as 1,176 dollars. In the first half of the year, revenue increased from 1.5 billion Euros to 4.7 billion Euros. But average rate of the company declined by 9 percent standing at 1,296 dollars per teu which was recorded as 1,176 dollars in second quarter of 2014. Hapag-Lloyd paying 346 dollars per ton as average bunker price in 2015 whereas in 2014 it is recorded as 592 dollars. The company benefited from US dollar value increase against other currencies in which it carries vessel disbursements. He said that top 100 members of management are going to meet next week to discuss about future agenda.

Source From: http://theloadstar.co.uk/hapag-lloyd-profits-from-a-challenging-q2-prove-our-merger-with-csav-was-right/