German shipping company Hapag-Lloyd saw a drop in third-quarter profit as adverse exchange rates and weak demand weighed on revenues.
Hapag-Lloyd said earnings before interest and tax (EBIT) fell 15 percent to 61.2 million euros ($82 million), on a 5 percent decline in revenues to 1.66 billion.
“The freight rate developments in the third quarter, the peak season for the liner shipping industry, were very disappointing,” Chief Executive Michael Behrendt said in a statement.
Container shipping companies are grappling with overcapacity in a faltering global economy.
Hapag-Lloyd’s average freight rate in the third quarter stood at $1,476 per standard container (TEU), well below the $1,647 in the same period last year, the company said.
The weak dollar had a negative impact on revenues, it added.
Singaporean rival Neptune Orient Lines Ltd said last month its net profit in the third quarter fell 60 percent from a year earlier to $20 million, while its revenue dropped to the lowest in nearly four years on lower freight rates and volume.
Maersk Line, which is due to report quarterly results on Nov. 13, is forecast to publish a 2.7 percent decline in operating profit to 532 million euros, according to a Reuters poll. (Reuters)