Lloyd's next five year strategy news by Hebei Longsheng Metals and minerals Co
| Hapag-Lloyd's new course has room for maneuver Hapag-Lloyd’s new five-year strategy focuses on efficiency and service rather than scale. The company is targeting a 12.0% EBITDA margin by 2023 vs. 10.5% in the 12 months to Sept. 30. A cost cutting plan is planned that’s equivalent to 3.2% points, giving the firm a significant buffer to compete for extra volumes. With antitrust considerations likely to rule out further industry consolidation then improved services will be needed. CMA-CGM’s “Eagle GO” guaranteed, high-speed service is one example and has allowed it to expand U.S.-inbound volumes by 13.2% in 12 months to Oct. 31 vs. a year earlier compared to Hapag-Lloyd’s 5.7%. Hapag-Lloyd could also provide tighter end-to-end logistics by teaming up more closely with K+N - the two share a major shareholder in Kuehne Group. That would echo a strategy being pursued by both Maersk and CMA-CGM. In the 12 months to Oct. 31 Hapag-Lloyd only accounted for 17.6% of K+N’s U.S.-inbound volumes. A deal with K+N seems unlikely in the short-term given the potential indicated by K+N's CEO, Detlef Trefzger, for consolidation in the forwarder sector with Panalpina. |
