Hapag-Lloyd says no to containership newbuilding orders

Following its takeover of UASC German container line Hapag-Lloyd is putting newbuilding orders on hold for the next few years.

News ID: 77303

Date: 18 November 2017 - 14:52

In its nine months earning report Hapag-Lloyd reported a net profit of EUR54.3m for the third quarter of 2017 compared to EUR8.2m a year earlier, MANA correspondent reported.

Revenues for Q3 2017 were EUR2.8bn up from EUR1.95bn in the same period in the previous year.

The company said that the integration of UASC was proceeding as planned after the takeover was finalised on 24 May this year.

“Following the completed takeover of UASC’s container shipping activities, Hapag-Lloyd will not invest in any more new ship systems in the next few years,” the company said in its third quarter financial report.

“The joint fleet should make it possible to utilise the medium-term expansion opportunities resulting from market growth and to realise economies of scale in ship operations. The plan is to make further optimisations in this area in the future with regard to age and efficiency.”

The integration of UASC took Hapag-Lloyd into the so-called megamax containership bracket with a series of 18,800 teu boxships. However, while rivals CMA CGM and MSC have returned to the yards with in the 22,000 teu range Hapag-Lloyd is opting to stay out of the latest round of vessel upsizing.

The company currently has no newbuildings on order having taken delivery of its last 15,000 teu vessel on 28 September this year, the final newbuilding from the merger with UASC.