Hapag-Lloyd chief executive Rolf Habben Jansen opens up on fleet investment plans, its new Gemini Cooperation and the general container market outlook
More investment in green methanol, a focus on retrofits and a strong start to its Gemini Cooperation were key takeaways from a virtual press briefing with Hapag-Lloyd chief executive Rolf Habben Jansen.
Mr Habben Jansen also spoke about the general container shipping market. He says, “Looking at the US trade policies since January – it has caused some volatility, but the market is remarkably resilient. Most people have predicted a growth that is flat or even negative, but for the first six months of this year there has been a growth of 4.5%.” And even if the second half of the year is a bit weaker, like for like it is still, he says, better than expected.
He highlights the impact of the 90-day pause on China tariffs announced in May on freight rates. This triggered a short-term spike, especially in the transpacific and now rates are “more or less flat”. Spot rates remain under pressure.
Mr Habben Jansen comments, “US tariffs want more clarity – the biggest challenge with the whole debate on trade policy has been the uncertainty for people. That makes it difficult to plan.” Noting the continuation of the 90-day pause, he hopes there will be a second agreement before it ends. “As it stabilises, there will be more confidence in the future and as such, trades that have been sluggish like the Atlantic will start picking up as there is less uncertainty.”
The Gemini Cooperation between Maersk and Hapag-Lloyd started this year and is off to a strong start. Mr Habben Jansen says, “Remarkably, we have been able to deliver 90% schedule reliability and deliver it month in and month out.” The improvement of on-time delivery has increased and even includes transhipment cargo, which is “better and better every week”.
He sums up, “One of our objectives with Gemini is being more punctual to have better utilisation of assets.”
Looking ahead, he says, “We have streamlining to do, because we see more opportunities to do better and be more cost efficient as we learn how the network works. Our cost position is improving, and on-time delivery is going up.”
Mr Habben Jansen also turned his attention to the company’s investment in its fleet and assets. It has taken delivery of the last four ships of its 12 24,000-TEU box vessel order. It has upgraded close to 40% of its existing fleet and to improve sustainability, the carrier is investing more in green methanol and plans to retrofit some ships towards the end of this year.
He comments, “We have taken delivery of around 300,000 TEU over the last couple of years and our orderbook is about the same size, which underlines our approach, which is to renew the fleet and try to grow with the market.”
Delving down into the orderbook, he says it makes up 18-19% which is “not all that crazy”. He adds, “It is growing roughly with the market and replacing tonnage. We always said we want to grow with the market (about 3% on average over the coming five years). We may still invest further but I don’t’ think we’ll create an orderbook like MSC, to name one carrier.”
In terms of the company’s terminal division, he says it is still at a “modest” level compared to competitors, but Hapag-Lloyd continues to invest.
