CONTACT US

Send us a message

* Please fill in the form below.
Seago Line Sees Modest Profit amid Lower Freight Rates

Seago Line Sees Modest Profit amid Lower Freight Rates

Despite strong headwinds in the intra-European market, short-sea and feeder operator Seago Line, part of Maersk Group, closed its 2016 financial year with a profit of USD 75 million.

 

However, the company’s net results were considerably lower in 2016 when compared to the profit of nearly USD 140 million seen in 2015.

 

According to the company, 2016 turned out to be a difficult year due to marginal market growth, oversupply coming from increased capacity from existing competitors and from larger shipping companies entering the intra-European market, intensifying competition on prices.

 

“The main driver of Seago Line’s reduced result is a decrease in freight rates which has now made the rates reach an unsustainable level,” Seago Line said.

 

“In the last part of 2016, we saw signs of an improving supply-demand situation due to increased scrapings which is encouraging, but the market situation is still very challenging,” the shipping firm added.

 

When talking about its plans for 2017, Seago Line said it will continue its “digital transformation journey” in an effort to make shipping easy for its clients.

 

This will be supported by internal restructurings of several business areas and optimization of processes.

Towards the end of 2017, Seago Line plans to phase in the first of its new Ice Class vessels. The newbuildings will replace existing vessels and enhance service coverage to and from the Baltic Sea, the company said.

Seago Line operates a fleet of 62 vessels with a capacity ranging from 375 to 3,000 TEU.

 

Source: World Maritime News

OTHER NEWS

  • APL turnaround brings significant boost to CMA CGM first-quarter results
  • Uber Freight officially parks in the marketplace, but only taking full loads
  • China Sparks World Container Traffic Boom
  • Navios Containers Eyes USD 75 Mn for Rickmers Fleet
  • Shippers squeezing margins 'pushed carriers toward bigger ships and alliances'
  • Crane Falls at Jebel Ali Port after Boxship Collision, No Fatalities
  • Nerves jangle as shippers and forwarders wait to hear who is bankrolling Yang Ming
  • Future Management of Hamburg Süd Unveiled
  • Shock for Japanese shipping lines as merger plan is rejected by US FMC
  • Yang Ming Expects 2nd Stage of Recapitalization by June
  • targets 3% growth as next-generation Triple-Es start to arrive
  • Sharp Decline in Idling Boxships
  • APL Enhances China-Indonesia Coverage
  • Yang Ming Halts Share Trading
  • Shanghai port, world's busiest, grapples with traffic congestion
  • Drewry: Bigger Ships to Continue Pressuring Freight Rates
  • Alibaba extends partnership with KN to cover cross-border B2B shipments
  • Seago Line Sees Modest Profit amid Lower Freight Rates
  • ZIM, MSC Upgrade North Europe Express Service
  • DHL Says Ocean Freight Rates Have Reached Turning Point
  • CMA CGM Strengthening EURAF 5 Services
  • OCEAN Alliance Starts Ploughing the Seas
  • Yang Ming losses continue to mount after 2016 revenue slump
  • FMC green light for 2M Alliance co-operation with HMM on transpacific
  • NYK, K Line and MOL pass first marker buoy en route to the merger
  • Maersk sets sail for logistics on land as shipping rates slump
  • Cosco Shipping Earns Less amid Shipping Market Imbalance
  • Maersk Line Offers Concessions to EU on Hamburg Süd Acquisition
  • Clarksons: Shipping Industry Looking for Ways to Return to Faster Volume Growth
  • Carriers bid to impress shippers with faster Asia-North Europe transit times
  • Hyundai Merchant officially joins major shipping alliance
  • APL to Add New, Modify Existing Three Services
  • Alphaliner: Asia-Europe Trade to See Further Rate Turmoil