Volume up, segment revenue down for Hapag-Lloyd in year's first half
Although first-half 2024's results were "well below" the same 2023 period's level, they were higher than the initial expectations due to stronger demand and rising spot rates during the second quarter, officials at Hamburg, Germany-based Hapag-Lloyd said on Aug. 14.
In the ocean carrier's Liner Shipping segment, transport volumes were 5% higher than 2023's first half total, to 6.1 million twenty-foot equivalent units (TEUs). Segment revenues fell by 14% to $9.3 billion "in particular due to a lower average freight rate, Hapag-Lloyd officials said. But given that demand and freight rates have exceeded expectations, the company's executive board now expects a better-than-originally-forecast fiscal year, adding this caveat: "In view of the highly volatile development of freight rates and major geopolitical challenges, this forecast remains subject to a high degree of uncertainty."
Maersk's 2Q earnings: Performance 'trending in the right direction,' CEO says
For the second quarter ended June 30, integrated container logistics company A.P. Moller - Maersk reported volume growth across all segments and improved financial performance with EBIT margin reaching 7.5% compared with 1.4% in the first quarter, Maersk officials said on Aug. 7.
“Our results this quarter confirm that performance in all our businesses is trending in the right direction," said Vincent Clerc, CEO of Copenhagen-based Maersk. "Market demand has been strong, and as we have all seen, the situation in the Red Sea remains entrenched, which leads to continued pressure on global supply chains. These conditions are now expected to continue for the remainder of the year."
The company's Ocean unit saw strong volume growth and higher freight rates, primarily in Asia exports, while the crisis in the Red Sea and rerouting south of Cape of Good Hope continued to lead to higher operating costs, officials said. Maersk's Logistics & Services unit grew by 7% compared to the same 2023 period and increased volumes across all product lines, which more than offset low rates, Maersk officials said. Profitability improved both sequentially and year on year, thanks in part to increased asset utilization and cost control measures, they said.
Maersk officials now expect global container market growth this year o be between 4% and 6%, compared with previous expectations of "towards the upper end of 2.5-4.5%," they said.
Malaysia: Westports Holdings handles more TEUs, boosts revenue in first-half '24
In the year's first six months, Malaysia-based port operator Westports Holdings Berhad recorded revenue of RM1.10 billion (1 RM/Malaysian ringgit = $0.22 USD) because it "handled a higher container volume of 5.4 million TEUs [editor's note: comps weren't included], port officials said on July 26. The intra-Asia regional trade lane accounted for 65% of the containers handled, officials said. The company also handled 5.68 million metric tons of bulk cargo.
"The regional port congestion has eased, but the [results] highlight the interconnectedness of Southeast Asia container shipping hubs like Port Klang and Singapore," said Datuk Rube Emir Gnanalingam bin Abdullah, Westports' executive chairman and group managing director. "It underscored the importance of having multiple ports to handle the growing regional trade as they work in tandem to ensure the resilience and reliability of the overall regional and global supply chains."
Panama Canal offers new long-term slot allocation method for Neopanamax ships
To "increase transit certainty and flexibility" for customers, the Panama Canal Authority on Aug. 2 announced a new long-term slot allocation for Neopanamax ships.
Currently, the slot offering is offered daily with an anticipation period before the required transit date.
Under the new method, several transit booking slot packages corresponding to January of the following year will be offered to different market segments; a single client will be able to obtain multiple bookings in a single transaction, canal officials said.
Each package will include a specific number of slots with weekly or monthly frequency per year, for both northbound and southbound transits.
The packages will be announced through the Booking Slot Projected Availability published at pancanal.com and will be awarded to the highest bidder via auction. The slot bids will start at $200,000. The auctions will be held starting Sept. 2, in advance of booking dates beginning Jan. 5, 2025, through Jan. 3, 2026.
Slovenia: Port of Koper to boost container capacity by 1.75 million TEUs
The Port of Koper in the Republic of Slovenia announced plans to build a container bank with berths and additional storage areas in the northern part of the first pier.
The contract includes the construction of coastal structures with two moorings of a total length of 326 meters, 7 hectares of storage and handling areas, dredging of the seabed along the operational coast and access channel, and the construction of the associated power infrastructure.
The operational coast and back areas are designed as reinforced concrete structures that will rest on deep foundation piles. To ensure adequate load-bearing capacity and stability, they will also be installed 66 meters below the seabed.
Bids are due Sept. 30. Work is expected to start at the beginning of 2025 and be completed at 2027's end.
"By expanding the capacities at the container terminal, we meet the expectations of shipowners and logisticians and strengthen our position among the northern Adriatic ports," said Nevenka Kržan, president of the port's board, on July 29. "After the completion of the construction works and the installation of coastal lifts and the arrangement of the existing storage areas, we will increase the annual container handling capacity to 1.75 million TEU. Construction follows the second track project in time, which is expected to be completed in 2026, so that in the Port of Koper, as well as in the entire Slovenian logistics, we will already take advantage of all the advantages of the upgraded port and railway infrastructure in the first years of operation."
M&A: Cyan Renewables acquires Australian vessel operator MMA Offshore
Singapore-based Cyan Renewables, an offshore wind services platform, has acquired Australian offshore marine services provider MMA Offshore for $702 million, Cyan announced on July 25.
MMA shareholders will receive $1.78 per share in cash, a 36% premium over the 90-day volume-weighted average share price, and EV/EBITDA ratio stands at 6.2x.
Cyan plans to retain MMA’s workforce, and leverage and expand its expertise, assets, and operating model to further penetrate the offshore wind support services market globally and in Asia, officials said, adding that Cyan will "actively pursue growth opportunities through mergers and acquisitions and organic expansion."
Cyan execs also added this: The wind farm market is projected to grow at a CAGR of 21.4% from 2024 to 2034. At the same time, the global demand for vessels in the offshore wind sector is expected to outpace supply significantly, particularly as the average turbine size has increased, with some projects now planning to install turbines as large as 15MW."
More M&A: Vossloh France to buy Paris-based concrete tie manufacturer
Vossloh France SAS, a wholly owned subsidiary of Vossloh AG, signed an agreement with TowerBrook Capital Partners L.P. to Paris-based concrete tie maker Sateba Group for $450 million euros, Vossloh announced on July 31.
Sateba will be integrated into Vossloh's Tie Technologies business unit, which serves the North American and Australian markets.
With about 1,120 employees and 19 production sites in 10 European countries, Sateba has a production capacity of around four million track and turnout ties per year.
In addition to concrete ties, Vossloh offers a range of products and services, from rail fastening and switch systems to crossings to digital-based lifecycle services for rails and switches.
"Many of our customers are facing the major challenge of providing the sufficient network capacity for the intended shift of traffic to rail," said Oliver Schuster, CEO of Vossloh AG. "Our customers need strong partners by their side in order to reach the politically and socially desired goal of more sustainable, rail bound mobility."
InnoTrans 2024: Discounted admission for North American attendees
The North American office of InnoTrans is offering attendees from North America a 60% discount on the regular admission price.
To be held Sept. 24-27 at the Berlin Fairgrounds in Berlin, Germany, InnoTrans comprises five main segments in 42 halls: railway technology, railway infrastructure, public transport, interiors and tunnel construction.
InnoTrans's outdoor and 3,500-meter track display area features a range of equipment, from tank wagons to high-speed trains.
For North American attendees, discounted tickets for all show days are EURO €40 (US$43) and include access to free public transportation during the event.
To receive the discounted ticket code, email mjbalve@globaltradeshow.com.
