Latest news with #HapagLloyd
Business Insider
29-05-2025
- Business
- Business Insider
Kepler Capital Remains a Sell on Hapag Lloyd (0RCG)
In a report released on May 27, Axel Styrman from Kepler Capital maintained a Sell rating on Hapag Lloyd (0RCG – Research Report), with a price target of €129.00. The company's shares closed last Tuesday at €154.60. Confident Investing Starts Here: According to TipRanks, Styrman is an analyst with an average return of -6.9% and a 32.50% success rate. Styrman covers the Energy sector, focusing on stocks such as Frontline, Euronav, and Torm. In addition to Kepler Capital , Hapag Lloyd also received a Sell from Barclays's Marco Limite in a report issued yesterday. However, on May 15, Berenberg Bank maintained a Hold rating on Hapag Lloyd (LSE: 0RCG).
Japan Times
26-05-2025
- Business
- Japan Times
Europe's shipping bottlenecks expected to persist into July
Port congestion is worsening at key gateways in northern Europe and other hubs, according to a new report that suggests trade wars could spread maritime disruptions to Asia and the U.S. and push up shipping rates. Waiting times for berth space jumped 77% in Bremerhaven, Germany, between late March and mid-May, according to the report on Friday from Drewry, a maritime consultancy in London. The delays rose 37% in Antwerp and 49% in Hamburg over the same stretch, with Rotterdam and the U.K.'s Felixstowe also showing longer waits. Labor shortages and low water levels on the Rhine River are the main culprits, hindering barge traffic to and from inland locations. Compounding the constraints is U.S. President Donald Trump's temporary rollback on 145% tariffs on Chinese imports, which has pulled forward shipping demand between the world's largest economies. "Port delays are stretching transit times, disrupting inventory planning and pushing shippers to carry extra stock,' Drewry said. "Adding to the pressure, the transpacific eastbound trade is showing signs of an early peak season, fueled by a 90-day pause in U.S.-China tariffs, set to expire on Aug. 14.' Similar patterns are emerging in Shenzhen, China, as well as Los Angeles and New York, "where the number of container ships awaiting berth has been increasing since' late-April, it said. Rolf Habben Jansen, CEO of Hamburg-based Hapag-Lloyd, said on a webinar last week that, although he's seen recent signs of improvement at European ports, he expects it will take "another six to eight weeks before we have that under control.' Still, Torsten Slok, Apollo Management's chief economist, pointed out in a note on Sunday that the U.S.-China tariff truce reached almost two weeks ago hasn't yet unleashed a surge in ships across the Pacific. "This raises the question: Are 30% tariffs on China still too high? Or are U.S. companies simply waiting to see if tariffs will drop further before ramping up shipments?' Slok wrote. EU-U.S. dispute U.S. tariffs — combined with sudden threats and truces — make it difficult for importers and exporters to calibrate their orders, causing unseasonal swings in demand. For shipping lines, those translate into delays and higher costs requiring freight rate hikes. The latest blow to visibility came Friday, when Trump threatened to hit the European Union with a 50% tariff on June 1, a move that could roil transatlantic trade. "The additional policy uncertainty will be a deadweight cost to global activity by adding risks to decisions on expenditures,' Oxford Economics said in a research note on Saturday. Germany, Ireland, Italy, Belgium and the Netherlands are the most vulnerable given their ratios of U.S. exports to GDP, it said. Bloomberg Economics said in a research note Friday that "additional tariffs of 50% would likely reduce EU exports to the U.S. for all products facing reciprocal duties to near zero — cutting total EU exports to the U.S. by more than half.' Mounting uncertainty about whether Trump would follow through on such a big trade threat or postpone it like he did with China is adding to shipping pressures. Carriers including MSC Mediterranean Shipping, the world's largest container line, had already announced general rate increases and peak season surcharges, starting in June, for cargo from Asia. In the weeks ahead, those are likely to boost spot rates for seaborne freight, the cost of which is still underpinned by geopolitical turmoil. Cargo ships are still largely avoiding the Red Sea, where Yemen-based Houthis started attacking vessels in late 2023, and sailing around southern Africa to ferry goods on routes that connect Asia, Europe and the U.S.. Avoiding 'massive congestion' On the webinar, Habben Jansen said it is still not safe to traverse the Red Sea and indicated that any eventual restoration of regular journeys through the Suez Canal would have to be gradual, perhaps taking several months, to avoid flooding ports with vessel traffic. "If we would from one day to another shift those ships back through Suez, we would create massive congestion in many of the ports,' Habben Jansen said. "So our approach would be that if we can do it, that we do it over a longer period of time so that the ports do not collapse, because that's in nobody's interest.'
Yahoo
17-05-2025
- Business
- Yahoo
Hapag-Lloyd Aktiengesellschaft Just Missed EPS By 16%: Here's What Analysts Think Will Happen Next
The investors in Hapag-Lloyd Aktiengesellschaft's (ETR:HLAG) will be rubbing their hands together with glee today, after the share price leapt 29% to €167 in the week following its first-quarter results. Revenues were in line with forecasts, at €5.1b, although statutory earnings per share came in 16% below what the analysts expected, at €2.51 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. After the latest results, the consensus from Hapag-Lloyd's ten analysts is for revenues of €18.1b in 2025, which would reflect a considerable 9.0% decline in revenue compared to the last year of performance. Statutory earnings per share are forecast to tumble 59% to €5.96 in the same period. Before this earnings report, the analysts had been forecasting revenues of €17.3b and earnings per share (EPS) of €4.24 in 2025. So it seems there's been a definite increase in optimism about Hapag-Lloyd's future following the latest results, with a very substantial lift in the earnings per share forecasts in particular. Check out our latest analysis for Hapag-Lloyd With these upgrades, we're not surprised to see that the analysts have lifted their price target 5.2% to €118per share. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Hapag-Lloyd analyst has a price target of €170 per share, while the most pessimistic values it at €75.00. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business. One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 12% by the end of 2025. This indicates a significant reduction from annual growth of 6.9% over the last five years. Yet aggregate analyst estimates for other companies in the industry suggest that industry revenues are forecast to decline 0.9% per year. So it's pretty clear that Hapag-Lloyd's revenues are expected to shrink faster than the wider industry. The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Hapag-Lloyd's earnings potential next year. They also upgraded their estimates, with revenue apparently performing well, although it is expected to lag the wider industry this year. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving. Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Hapag-Lloyd going out to 2027, and you can see them free on our platform here. And what about risks? Every company has them, and we've spotted 2 warning signs for Hapag-Lloyd (of which 1 can't be ignored!) you should know about. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
16-05-2025
- Business
- Reuters
Container ship owners swamped as US-China trade detente revives demand
LOS ANGELES/HONG KONG, May 16 (Reuters) - Container ship bookings for China-to-U.S. cargo have surged since the countries declared a 90-day truce on punitive tit-for-tat tariffs last weekend, operators said, spawning traffic jams at Chinese ports and factories that could take weeks to clear. U.S. importers of sneakers and sofas to construction supplies and auto parts are racing to get goods in before the deadline resets tariffs again, setting the stage for disruptions that recall the global transport quagmire during the COVID-19 pandemic. The cargo surge at major trade gateways like Shenzhen's Yantian Port, which handles more than a quarter of China's exports to the United States, has ship owners scrambling to coordinate berths and adjust vessel schedules. "The demand is so high that we can only serve customers who have made long-term contracts with us," a spokesperson for German container ship operator Hapag-Lloyd ( opens new tab told Reuters. "We have hardly enough space for spontaneous bookings." Container-tracking software provider Vizion said average bookings for the seven days ended on Wednesday soared 277% to 21,530 20-foot equivalent units from the 5,709 TEU average for the week ended May 5. Owners of factories that make toys to holiday decor told Reuters they are booking previously frozen cargo headed to U.S. stores, including Walmart (WMT.N), opens new tab. Lalo, for example, which sells its baby furniture online and through retailers like Target (TGT.N), opens new tab and (AMZN.O), opens new tab, is among the companies that gave factories the green light to move their finished orders. "We had hundreds of thousands of units waiting to ship," said Lalo co-founder Michael Weider. "These products can now get on the water." "Everybody is very busy from my company, at my friend's companies," said Richard Lee, CEO of NCL Logistics, in China's southern metropolis of Shenzhen. "They are preparing a lot of cargo, a lot of products, to be shipped immediately from China to the U.S." The shipping surge will translate into a rush of arrivals at U.S. West Coast ports in the coming weeks. Still, industry experts, including the executive director of the Port of Los Angeles - the busiest U.S. seaport and No. 1 for ocean shipments from China, do not foresee a COVID-level tsunami of cargo. Rather, they project a large, but manageable wave. On Thursday, the off-contract spot rate from Shanghai to Los Angeles shot up 16% from the prior week to $3,136 per 40-foot container, according to data from maritime consultancy Drewry. That is less than half than in April 2024, but could jump sharply on June 1 to about $6,000 per container if ship owners push through rate increases. In the early days of the pandemic, as now, cargo demand spikes overwhelmed factories and container ships, kinking supply chains. Shipping and retail experts said 90 days is not enough time for most factories to fill new orders. Fewer slots are available on cargo ships because vessel owners had been culling China-to-U.S. voyages and schedules. Now, ocean carriers are "cancelling cancellations" of sailings, Drewry said. Demand, however, is markedly different this time. Trump's second-term tariffs have weakened U.S. retail sales, homebuilding and manufacturing - key drivers of container shipments. Moreover, many U.S. companies are sitting on inventory accumulated before Trump imposed tariffs on China and other countries. And nobody knows what import duties will be when the 90-day deadline expires in August. The Trump administration confirmed to Reuters that the U.S. rate would reset to 54%, assuming no agreement is reached by the deadline. Many retailers are prioritizing which products to order and ship, said Jessica Dankert, vice president of supply chain for the Retail Industry Leaders Association trade group, whose members include Home Depot (HD.N), opens new tab, Gap (GAP.N), opens new tab and Dollar General (DG.N), opens new tab. "It's still 30% at the end of the day," said Jamie Salter, CEO of Authentic Brands Group, referring to tariffs on China. Authentic Brands owns and licenses clothing brands including Reebok, Champion, and Forever 21. Some large suppliers to Detroit's Big Three automakers told Reuters that on customers' requests, they are flying in parts from China and stockpiling them. Others declined to add to inventories, saying they lacked the space and funds to do so. A Halloween goods exporter from the city of Yiwu in China, who gave her English name, Cecilia, said tariff increases have cut total orders in half this year and warned that prospective buyers are running out of time. "If you order now, you will have an anxious wait to see if it will be too late," she said. Jimmy Zollo, CEO at Joe and Bella, sells Chinese-made clothing for adults who have trouble dressing themselves due to arthritis, dementia or being in a wheelchair. He placed a new order with his supplier even though the 90-day window could close before he can take delivery. "We're hopeful that a new trade agreement is implemented, and the lowered tariffs do not expire," Zollo said.
Reuters
16-05-2025
- Business
- Reuters
US freight industry hopes for back-to-school demand boost after tariff truce
May 16 (Reuters) - A 90-day trade thaw between Washington and Beijing could prove to be a welcome reprieve for the U.S. freight industry, as importers rush to lock in shipments ahead of the busy back-to-school period, experts said. The $906 billion U.S. trucking industry, in particular, has been facing a nearly three-year-long slowdown due to overcapacity, which was worsened by President Donald Trump's recent tariffs on the country's largest trading partners. But an agreement on Monday between the world's two largest economies to slash tariffs for at least 90 days, coupled with the White House's deal with the UK and ongoing negotiations with other trade partners, have shifted expectations from fears of low freight activity to a potential import surge ahead of the peak shopping season starting late July. While most transportation companies have lowered their second-quarter or full-year earnings guidance due to sweeping tariffs and weak consumer sentiment, "there is now a scenario where Q2 forecasts may be beatable," Evercore ISI analyst Jonathan Chappell said. German container shipping company Hapag-Lloyd CEO Rolf Jansen said on Wednesday the company's bookings were up 50% week-on-week for U.S.-China traffic, and that the carrier was deploying ships of different sizes to meet demand. Bilateral trade between China and the United States touched $668 billion in 2024, Chinese customs data showed. A pickup in port volumes increases demand for trucking capacity to move containers off the ports as well as for railroads to transport them inland. This typically boosts freight revenue, with profit gains depending on cost and capacity management. The expected influx could benefit carriers such as JB Hunt (JBHT.O), opens new tab, Knight-Swift (KNX.N), opens new tab, Hub Group (HUBG.O), opens new tab and Old Dominion (ODFL.O), opens new tab, and railroads such as Union Pacific (UNP.N), opens new tab and CSX (CSX.O), opens new tab stand to gain from a rebound in intermodal volumes. The U.S. surface transport industry is among the first to register shifts in business activity, serving as a reliable barometer for broader economic changes. C.H. Robinson's global forwarding president, Mike Short, told Reuters that while some customers stocked up ahead of tariffs, many small-to-medium retailers took a wait-and-see approach and are now rushing to move goods. "Given we're in the back-to-school and retail season ordering period, importers will very likely place large orders and pressure the manufacturers in China to produce as quickly as possible," said Dean Croke, principal analyst at DAT Freight & Analytics (ROP.O), opens new tab. Considering the transit time, experts believe the additional freight will start hitting the U.S. West Coast ports by end-June, boosting spot rates around the same time as the peak produce shipping season. "We're advising clients to lock in capacity early, given the likelihood of tighter space and rising spot rates," said Chad Schilleman, vice-president of Drayage Services at Trinity Logistics.
