16.7 C
Thursday, June 24, 2021
Home News Profit down warning by Hapag-Lloyd (Bloomberg)

Profit down warning by Hapag-Lloyd (Bloomberg)

Shares of German shipping line Hapag-Lloyd AG plunged as much as 22 percent after the company cut its profit forecast for the year, as overcapacity in the industry combined with rising fuel costs to put a squeeze on profit.

Danish rival A.P. Moller-Maersk A/S also fell on Hapag-Lloyd’s surprise profit warning. Container-shipping capacity has been growing faster than trade volume this year, as huge ships ordered in previous years come into service. Overcapacity has led to price competition among liner alliances, according to analyst Frode Moerkedal at Clarksons Platou.

Read more on Bloomberg.

Latest Posts

Fremantle port workers to strike for 24 hours

Fremantle Inner Harbour workers will undertake 24 hours of legally protected industrial action from 10 am (local time) on 25 June, preventing vessels from...

SC Ports approves FY22 plan to improve terminal and IT infrastructure

South Carolina Ports Authority’s Board of Directors has unanimously adopted a financial plan for fiscal year 2022. The plan projects that SC Ports will handle...

CMA CGM applies congestion surcharge in Oakland

French container carrier, CMA CGM has announced a port congestion surcharge of US$250 per TEU for all types of cargo from Latin America to...

Port of Koper strengthens its container handling capabilities

The container quayside at the southern end of Pier I in the Port of Koper has been extended by 100 metres. The extended quayside with...

SCA, Ever Given owners and insurers come to a deal in principle

An agreement in principle has been reached among the Suez Canal Authority (SCA), the owners of the 20,388TEU Ever Given, which blocked the Suez...