Hamburg Süd has revealed that it failed to escape the impact of the global economic crisis in 2009, with shipment volumes in the liner business down 13 per cent to 2.3bn TEU and freight rates 'dropping significantly'.
According to the German group, these lower volumes had an impact on group turnover, which subsequently fell to €3.2bn, down 28 per cent when compared with 2008.
'Against the backdrop of declining shipment volume, the container pool was significantly reduced by the return of leased containers and the sale of old owned boxes,' the shipping line said in a statement. 'In contrast, the slot capacity of deployed vessels, at 304,000 TEU, remained roughly constant. The number of container ships, however, fell by 13 per cent to 96 units.'
The group noted that the strategy of lowering unit costs was continuing, with smaller charter vessels being replaced by larger newbuildings. By the end of the year, the Hamburg Süd fleet included 52 vessels in the tramp division, comprised 148 units, 36 of them group-owned.
Investment was restricted as a result of the downturn, with a minimum of €167m spent, down on €530m in 2008. For the coming three years, Hamburg Süd is anticipating an increase of over €700m in capital expenditure on ships and containers.
Cost cutting measures, seen as a necessity given the decline in earnings, saved the group some €300m through the year, the shipper said, helping to avoid any 'substantial' reduction in staff.
These measures included the rationalisation of liner services - mainly with partners - and slow steaming programmes to lower ship system costs, with a wide range of individual measures taken in the area of cargo handling, intermodal and depo costs to cut cargo-related excess.
Administrative expenses also had to make a contribution, Hamburg Süd noted, though without resulting in any substantial redundancies.
'Despite the comparatively positive performance of dry tramp shipping, Hamburg Süd was not able to post a positive result in 2009,' the group said. 'Considering the historic crisis in liner shipping, however, the fact that the group overall recorded a positive operational cash flow sufficient to cover the – albeit reduced – investment budget can be viewed as a success.'
