German container line Hapag-Lloyd is to enforce cost cuts to handle the coronavirus crisis, reports Reuters.
Why cost cuts?
Hapag-Lloyd’s chief executive Rolf Habben Jansen said that the company is to implement cost cuts to take account of the coronavirus crisis.
He said the Hamburg-based firm, the world’s fifth largest shipping operator, would seek cost cuts by a “mid three-digit million euro sum this year.”
What is the reason?
“A slump in demand and a bunching of shipments due to a disruption in global logistics meant reduced port calls and empty sailings on certain routes, while costs to handle the mismatches had risen.”
He also added that Hapag-Lloyd was operating from a healthy capital base and could respond quickly to a rebound in activities while China was emerging out of its slowdown.
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