From CNBC, March 15/16:
- The CEO of Hapag-Lloyd tells CNBC inventories are depleted in many cases and the ocean carrier has seen a recovery after Chinese New Year.
- Due to the ongoing Houthi attack issues in the Red Sea and Panama Canal drought, U.S. companies are paying more for ocean freight, with rates on key routes up 75% to 150% year-to-date.
- Peak shipping season is expected to start a little earlier this year, in June, due to the threat of labor strikes at the East Coast and Gulf Coast ports in the fall.
Rolf Habben Jansen, CEO of Hapag-Lloyd, the world’s fifth-largest ocean carrier, tells CNBC he has an improved view on trade for the rest of 2024. Conversations with clients and other logistics companies have led the shipping CEO to a more optimistic view on demand in the second half of the year than projected in previous forecasts.
“We also see that inventories are depleted in many cases and so far we’ve seen a good recovery after Chinese New Year,” Jansen said. “So we’ve been fairly happy with that.”
The company reported a steep drop in its 2023 net profit this week and slashed its dividend, which led to a stock decline. It was the third-best group profit in company history, albeit significantly lower than 2022, which was fueled by container congestion and high freight rates.
“The last quarter of 23 was difficult because rates were at unsustainable levels,” Jansen said. “I think everybody noticed that. We saw them coming up a bit towards the end of the quarter, and then of course, the Red Sea crisis ... which again changed the market.”
Added climate costs from Red Sea diversions....
....MUCH MORE
