Hapag-Lloyd spending big money on fleet, eyes port invest (updated)

Tanger

02/09/2022 11:54

* Hapag has 22 big ships on order, launched fleet renewal 
    * Possible port investment seen in Europe or Americas
    * World ship orders will not oversupply future fleets

 (Adds details, comments on industry)
    By Vera Eckert and Jan Schwartz
    HAMBURG, Sept 2 (Reuters) - German container shipper
Hapag-Lloyd  HLAG.DE  is spending billions on expanding and
renewing its fleet and looking at investing in more port
infrastructure to extend its edge in the post-COVID 19 world
economy, chief executive Rolf Habben Jansen told Reuters.
    The Hamburg-based company, the world's fifth-biggest
container line, is armed with a huge war chest after reporting
record earnings during the coronavirus crisis, which dislodged
shipping capacity, clogged up ports and drove up freight rates.
    "We have currently ordered 22 ships, twelve of them with
24,000 TEU (20-foot equivalent units) and ten with 13,000 TEU,"
the CEO said in an interview.
    The new ships are worth around $3 billion and will add
almost a quarter to the fleet in TEU terms, Habben Jansen said.
    Just last week, the company also launched a fleet renewal
programme worth a treble digit million sum, covering more than
150 ships, or nearly two thirds of its fleet, while it is eyeing
port terminal investments over the next year.
    "It would be logical to invest in port terminal
infrastructure at locations where we are already strong," Habben
Jansen said, suggesting Europe but adding that North or South
America were potential sites.
    "I would be surprised if there wasn't an investment in the
terminal area within the next 12 months," he said.
    Recent purchases of stakes in port hubs include Damietta in
Egypt, Tanger in North Morocco and JadeWeserPort in
Wilhelmshaven.
    The CEO stuck by the company's raised forecasts for
full-year 2022 earnings, saying that lower freight rate income
and higher energy prices would affect earnings in six or nine
months. urn:newsml:reuters.com:*:nL1N2ZN09U
    "It is true that we are paying significantly more for fuels
but there are also first signs that prices of some commodities
are falling again," Habben Jansen said, referring to
inflationary pressures.
    Turning to capacity, Habben Jansen said that an order book
worth 28% of total fleet volumes was excessive.
    The overcapacity of the past decade, reaching 60% in some
instances, was unlikely to return given stricter environmental
rules, binding capacity and mandating slower travelling time, he
added.

($1 = 1.0011 euros)

 (Reporting by Vera Eckert and Jan Schwartz, editing by Paul
Carrel and Louise Heavens)
 ((vera.eckert@thomsonreuters.com; +49 30 2201 33654;
@EckertVera;))