LLOYD avoids China risk news by Hebei Longsheng
| Hapag-Lloyd avoids China risk, can't dodge fuel cost troubles Hapag-Lloyd reported 4Q revenues that rose 16.1% year over year, though that included an average container-rate increase of just 3.9%. That was well below Maersk, and the industry average, which achieved a 9.3% improvement. Hapag-Lloyd’s volume growth of 7.2% did not receive a big boost from the Trans-Pacific tariff war – its China-to-U.S. volume rose by just 6.5% year over year in 4Q and have since fallen by 1.0% in January. With China accounting for just 18.1% of total U.S.-inbound volumes it should remain unaffected by future developments in U.S.-China relations. The bigger problem for Hapag-Lloyd is declining profitability. The group's EBITDA margin fell to 10.5% from 12.5% a year earlier as a result of rising fuel costs. More details on the strategic reaction to that reduction should be forthcoming on Mar. 22. Hebei Longsheng metals and minerals co., ltd. |
