Hapag-Lloyd Q3 profit down 64% on weak freight rates

[HAMBURG] Hapag-Lloyd has said that third-quarter profit fell almost 64 per cent as Europe's fourth-largest container-shipping line confronted low peak-season freight rates.

Net income dropped to 16.6 million euros (S$27.8 million) from 45.6 million euros a year earlier, the Hamburg-based company said in a statement. The average freight rate declined more than 10 per cent to US$1,476 per standard container, or TEU, in the quarter.

"The freight rate developments in the third quarter, the peak season for the liner shipping industry, were very disappointing," chief executive officer Michael Behrendt said in the statement, adding that the pressure on rates continues.