While it was originally expected that the shipping industry would be affected by COVID-19 for months, German container shipping firm Hapag-Lloyd is benefitting from a rebound in transport demand.
However, chief executive Rolf Habben Jansen has warned about the longer-term impact on economic activity from the Coronavirus. He believes that the current recovery, which began at some time in the third quarter, is expected to continue going into 2021.
“There will be a clear long-term effect on the global economy from COVID-19, which will have an impact on the flow of goods,” Habben Jansen said.
The world’s number five container line will report nine-month earnings on November 13, having doubled its net profit in the first half of 2020 when it maintained its full-year outlook.
Hapag-Lloyd’s profitability can be attributed to cost reductions, lower shipping fuel, and recovering demand, especially on Transpacific routes.
Hapag-Lloyd’s rival, Maersk, has also proved resilient in the crisis.
Habben Jansen notes that freight rates on Asia-Europe runs have increased in recent weeks and were stable elsewhere, as were bunker prices for the time being.
Even with the recent increase in demand, broker estimates see global transport volumes down by around 11% annually in 2020.
