HAPAG-Lloyd looks to be tightening its belt for a challenging market in the near and medium term.
At the company’s annual general meeting CEO Rolf Habben Jansen told shareholders the line would secure its competitive in the short term through “accelerated cost management and greater efficiency”.
“In the medium term, we will further advance digitalisation efforts at Hapag-Lloyd and continue to strengthen our position as a quality service provider,” he said.
“We must also respond with increasing agility to a dynamic environment and geopolitical developments.”
Mr Habben Jansen pointed to the IMO’s impending sulphur cap for bunkers as an issue.
“Stricter limits on sulphur in fuel from 2020 onwards will pose a major challenge for the shipping industry, as we will have to simultaneously use new technologies and fuels which are currently only being trialled or are not sufficiently available,” he said.
In the statement about the Hapag-Lloyd AGM, there was no mention of the recent rumour that CMA CGM had approached it with a merger deal. Reuters reported the rumour citing three unnamed sources.
Hamburg-headquartered Hapag-Lloyd is the world’s fifth-largest container liner with a capacity of 1.6m TEU, 7.2% of the global total, according to Alphaliner.