Driven by increased demand, German container shipping major Hapag-Lloyd is launching a new service that will link Southern China with Northern Europe, reports Offshore Energy.
About the new service
Available from 1 April 2022, Hapag-Lloyd will offer the new China Germany Express (CGX) service as a two-port loop product.
The new service will provide another gateway from and to the south of China and directly connect Northern Europe on a weekly basis.
“With our customers’ cargo planning and the strong demand for container transports in mind, we have developed this new service for China-Germany relations that pays attention to addressing the current market challenges,” Andreas Buetfering, Senior Director Trade Management Far East at Hapag-Lloyd, explained.
“We meet these challenges by offering our customers a new and fast connection between China and Europe whilst at the same time reducing complexities and increasing reliability for them.”
The new China Germany Express (CGX) service will operate with eight Panamax container vessels and replace Hapag-Lloyd’s Far East Loop 6, 7 and 8 services from April 2022.
Benefits of CGX
This shift will result in a transition to a product that enables an improved long-term cargo planning, according to the company.
The CGX will provide regular weekly departures with a 27 day transit time. The first westbound sailing (Dachan Bay to Hamburg) is scheduled for the beginning of April 2022, and the first eastbound sailing (Hamburg to Dachan Bay) for the beginning of May 2022.
The fruitful outcome
Hapag-Lloyd recently reported an “extraordinary” strong operating result in 2021, driven by high freight rates.
On the basis of preliminary figures, Hapag-Lloyd’s earnings before interest, taxes, depreciation and amortisation (EBITDA) for the 2021 financial year increased to more than $12.8 billion, compared to $3.1 billion seen in 2020.
According to the company, the main drivers of these positive business developments have been significantly improved freight rates resulting from very strong demand for goods exported from Asia.
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Source: Offshore Energy