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Hamburg-Sud, feels CCNI benefit, revenue rises to US$6.92 billion

GERMANY's Hamburg-Sud revenue increased 16.8 per cent to EUR6.1 billion (US$6.92 billion) in 2015 as Germany's No 2 carrier profited from its purchase of Chile's CCNI shipping line.

(Privately owned Hamburg Sud does not release profit figures.)

Volumes grew 21.5 per cent to 4.1 million to TEU in 2014, as it overcame continued economic weakness in its South America markets, particularly Brazil, Argentina and Venezuela.

The company described its container business as less than "less than satisfactory", partly the offset by falling oil prices but not enough to cover a 16 per cent decline in freight rates.

Expecting volumes to increase by eight per cent in 2016, Hamburg-Sud plans to build on its 2015 market-beating traffic growth.

"The once-again above-average increase in excess of market growth is based primarily on the capacities and market shares built up in the past fiscal year, which are to be maintained throughout 2016 and respectively expanded," said the company statement.

But Hamburg-Sud cautioned that its container results are "significantly dependent" on the development of the global economy and international trade, as well as the industry's ability to adapt to changed underlying conditions.

"In 2016, further consolidation can be expected in liner shipping. The lines will only be able to regain reasonable levels of return if capacities and cargo volumes will be in balance on a global scale," said the company statement.

The International Monetary Fund (IMF) says the global economy and global trade will each grow by three per cent in 2016, noted the company statement.

"While the US economy and the eurozone are roughly retaining their dynamic, the recession in Brazil is expected to continue (?.8 per cent). At 6.5 per cent, China is set to remain the growth driver in the world economy, though its dynamism is diminishing," said the company statement.