Latest News

Red Sea crisis unlikely to end soon, Hapag-Lloyd CEO says

0

Red Sea crisis unlikely to end soon, Hapag-Lloyd CEO says By Reuters

Breaking News

‘;

Global

Published Jan 31, 2024 09:06
Updated Jan 31, 2024 09:47

© Reuters. FILE PHOTO: Hapag-Lloyd sign on a container ship is pictured at the Valparaiso port, Chile, January 11, 2024. REUTERS/Rodrigo Garrido/File Photo

By Elke Ahlswede

HAMBURG (Reuters) -Attacks on cargo vessels in the Red Sea by Yemen-based Houthi rebels are unlikely to end soon, forcing shipping companies to avoid the route through the Suez Canal, the head of Germany’s Hapag-Lloyd told reporters on Wednesday.

“We don’t think it will be over the day after tomorrow,” chief executive Rolf Habben Jansen said at a news briefing in Hamburg. “Whether it’ll be one, three or five months – I don’t know.”

A political deal and a mission to protect freight vessels might bring a resolution within six months, he added.

Hapag-Lloyd, the world’s fifth biggest container liner, has joined other shippers in taking longer, costlier journeys around Africa, after one of its ships was attacked on Dec. 15.

It was important that the European Union actively supported a multinational naval coalition to protect commercial traffic in the region, Habben Jansen said.

Rerouting around Africa takes vessels 2-3 weeks longer, resulting in a drop of 150,000 standard containers (TEU) being transported in December compared with original expectation, he said.

Hapag-Lloyd transports roughly one million TEU per month on its 264-strong fleet.

Mitigations have included buying more containers, adding 125,000 in TEU capacity at a cost of $350 million, it said. But using more ships to meet demand on time, and running those faster on more fuel, involved higher costs for customers.

On Tuesday, Hapag-Lloyd reported earnings before interest and tax for 2023 of 2.5 billion euros ($2.70 billion), a fraction of 2022’s 17.5 billion euros.

It cited lower freight rates as global supply chains normalised following the pandemic.

($1 = 0.9246 euros)

Red Sea crisis unlikely to end soon, Hapag-Lloyd CEO says

Our Apps



Terms And Conditions
Privacy Policy
Risk Warning
Do not sell my personal information

© 2007-2024 Fusion Media Limited. All Rights Reserved.

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

1 Stock Down 57% From Its 52-Week High That This Wall Street Analyst Expects to Gain 426% in 2024

Previous article

Paramount Global stock soars on report of Byron Allen bid

Next article

You may also like

Comments

Leave a reply

Your email address will not be published. Required fields are marked *

More in Latest News