- Hapag-Lloyd has reported a rise in transatlantic shipping volumes to the U.S., driven by companies restocking inventories and preparing for potential labor disruptions at U.S. ports.
- The company has also adjusted to disruptions in the Red Sea, though it hopes these are not a permanent challenge.
- Hapag-Lloyd’s first-half financial report showed a significant drop in net profit.
Hapag-Lloyd, a major global container shipping company, has observed a notable increase in shipping volumes from Europe to the United States. This surge is largely due to U.S. companies rushing to restock inventories and prepare for potential disruptions related to upcoming labor negotiations.
Increase in Shipping Volumes
Rolf Habben Jansen, CEO of Hapag-Lloyd, stated in an online briefing that U.S. companies are bringing in shipments earlier than planned because of the deadline for labor contract talks between cargo worker unions and port managers. This move is aimed at avoiding delays that could occur if a strike happens.
Restocking Drives Higher Demand
Habben Jansen also noted that there is a general effort to replenish inventories in the U.S. “We see U.S. inventory levels returning to normal after last year’s drop due to higher interest rates,” he said. This effort to restock is a key factor in the increased shipping volumes.
Tariff Hike Concerns Downplayed
Despite concerns about possible import tariff increases from U.S. presidential candidate Donald Trump, Habben Jansen said there has not been a noticeable increase in shipments in anticipation of these tariffs. He suggested that any impact from such tariffs would not be felt until early 2025.
Adjustments Due to Red Sea Disruptions
Habben Jansen also addressed the disruptions in the Red Sea caused by attacks from Houthi militants. Many customers have adjusted their supply chains to deal with longer and more expensive routes around Africa. He remains hopeful that these disruptions will not become a permanent issue for the industry.
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Source: Reuters
