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.
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