Latest news with #HapagLloyd
The National
a day ago
- Business
- The National
Shipping unhindered in Strait of Hormuz despite Israel-Iran war risks
Ships are continuing to travel through the Strait of Hormuz, but leading companies say they are closely monitoring the Israel-Iran conflict, and safety is a priority. 'So far, our operations across the region continue without interruption,' a spokesperson for German shipping company Hapag-Lloyd told The National in a statement. The company added that it is closely monitoring the 'geopolitical developments' in the Middle East and the 'safety of our seafarers and vessels as well as the cargo of our customers' are its priority. Ships carry about 20 million barrels of crude and refined products daily through the key waterway between Iran and Oman to various destinations from Gulf producers and from Iran and Iraq. This week, two ships collided in the Sea of Oman near the Strait of Hormuz after a 'navigational misjudgment' by one of the vessels. The UAE Energy Ministry did not blame the accident on the current conflict but it highlighted the risk of navigating through the water channel as it continues. Closing down the waterway is one option Iran could take to respond to its enemies, said Behnam Saeedi, a member of the Iranian parliament's national security committee. Shipping major Maersk said it will continue to use the Strait of Hormuz but will pause calling at the Israeli port of Haifa following Iran's bombardment of the coastal city this week. 'We will continue to closely monitor the situation and will be ready to reassess this as soon as feasible," Maersk said. The conflict began on June 13 when Israel launched a wave of strikes across Iran, killing senior military officials and hitting key nuclear sites. Iran launched retaliatory missile strikes on Israel, hitting a number of targets. The conflict is continuing with both countries hitting each others targets. Some LNG vessels en route to Qatar to load are holding back near Oman, maritime Research Consultancy Drewry Shipping said. Dry bulk imports of grain and agri-products, including soya beans and sugar, to Iran are also stalled at the moment, Rahul Sharan, deputy director of bulk research at Drewry told The National. 'Similarly, Iran's exports of iron ore, cement and clinkers, steel products and urea are also stalled,' he said. About 20 per cent of the world's oil consumption passes through the Strait of Hormuz, which is the only entry point to the Arabian Gulf. Impact on oil and trade Energy companies have also expressed concern about the war's impact on trade and oil shipments. A blockage of the Strait of Hormuz could deliver a substantial shock to global trade, Shell chief executive Wael Sawan said at the Japan Energy Summit and Exhibition in Tokyo on Thursday. 'If that artery is blocked, for whatever reason, it has a huge impact on global trade,' Bloomberg reported quoting Mr Sawan as saying. 'We have plans in the eventuality that things deteriorate.' Oil prices are trading higher on supply related concerns. Prices surged as much as 13 per cent on the first day of the conflict and analysts are expecting oil to touch $150 per barrel if the Strait of Hormuz is shut. 'What is particularly challenging right now is some of the jamming that's happening,' said Mr Sawan, referring to the interference with navigation signals in and around the Arabian Gulf. Shell is 'being very careful' with shipping in the Middle East due to the conflict, he said. Rising shipping costs Another impact of the war has been on shipping costs, which have gone up for vessels travelling through the region, including through rising insurance premiums, according to analysts and insurers. 'The price to charter a very large crude carrier from the Gulf to China reportedly more than doubled from about $20,000 a day a week ago to about $47,600 on Wednesday,' Philip Damas, managing director and head of Drewry Supply Chain, said. Insurance rates have also gone up for cargo vessels sailing in the Red Sea, Arabian Gulf and travelling to or from Israeli ports, according to Marcus Baker, global head of marine and cargo at Marsh McLennan. 'All quotes are now valid for 24 hours from most leaders, as opposed to 48 hours previously,' Mr Baker said. There is also a slight rise in war risk insurance rates for the Red Sea and Arabian Gulf and ports in Israel, he added. 'We are now seeing a modest drop in the number of ships sailing through the area,' Jakob Larsen, chief safety and security officer at Bimco shipping association, told The National. He added that US authorities reported no indications of a threat from Iran towards commercial ships other than those with links to Israel. However, Iran might expand their threats "to also take aim at ships without links to Israel,' if the tension mounts, he added. 'Iranian forces are highly skilled in asymmetric warfare and have prepared for decades for a scenario involving attacks against shipping through the Strait of Hormuz and adjacent waters,' he said. Last year, Iran's Revolutionary Guard seized a container ship with links to Israel in the strait.
Business Insider
6 days ago
- Business
- Business Insider
Kepler Capital Sticks to Their Sell Rating for Hapag Lloyd (0RCG)
Kepler Capital analyst Axel Styrman maintained a Sell rating on Hapag Lloyd (0RCG – Research Report) on June 13 and set a price target of €129.00. The company's shares closed last Friday at €144.20. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Styrman covers the Energy sector, focusing on stocks such as Frontline, Euronav, and Torm. According to TipRanks, Styrman has an average return of -6.0% and a 35.25% success rate on recommended stocks. The word on The Street in general, suggests a Moderate Sell analyst consensus rating for Hapag Lloyd with a €119.89 average price target, representing a -16.86% downside. In a report released on May 28, Barclays also maintained a Sell rating on the stock with a €93.00 price target.
Business Insider
29-05-2025
- Business
- Business Insider
Kepler Capital Remains a Sell on Hapag Lloyd (0RCG)
In a report released on May 27, Axel Styrman from Kepler Capital maintained a Sell rating on Hapag Lloyd (0RCG – Research Report), with a price target of €129.00. The company's shares closed last Tuesday at €154.60. Confident Investing Starts Here: According to TipRanks, Styrman is an analyst with an average return of -6.9% and a 32.50% success rate. Styrman covers the Energy sector, focusing on stocks such as Frontline, Euronav, and Torm. In addition to Kepler Capital , Hapag Lloyd also received a Sell from Barclays's Marco Limite in a report issued yesterday. However, on May 15, Berenberg Bank maintained a Hold rating on Hapag Lloyd (LSE: 0RCG).
Japan Times
26-05-2025
- Business
- Japan Times
Europe's shipping bottlenecks expected to persist into July
Port congestion is worsening at key gateways in northern Europe and other hubs, according to a new report that suggests trade wars could spread maritime disruptions to Asia and the U.S. and push up shipping rates. Waiting times for berth space jumped 77% in Bremerhaven, Germany, between late March and mid-May, according to the report on Friday from Drewry, a maritime consultancy in London. The delays rose 37% in Antwerp and 49% in Hamburg over the same stretch, with Rotterdam and the U.K.'s Felixstowe also showing longer waits. Labor shortages and low water levels on the Rhine River are the main culprits, hindering barge traffic to and from inland locations. Compounding the constraints is U.S. President Donald Trump's temporary rollback on 145% tariffs on Chinese imports, which has pulled forward shipping demand between the world's largest economies. "Port delays are stretching transit times, disrupting inventory planning and pushing shippers to carry extra stock,' Drewry said. "Adding to the pressure, the transpacific eastbound trade is showing signs of an early peak season, fueled by a 90-day pause in U.S.-China tariffs, set to expire on Aug. 14.' Similar patterns are emerging in Shenzhen, China, as well as Los Angeles and New York, "where the number of container ships awaiting berth has been increasing since' late-April, it said. Rolf Habben Jansen, CEO of Hamburg-based Hapag-Lloyd, said on a webinar last week that, although he's seen recent signs of improvement at European ports, he expects it will take "another six to eight weeks before we have that under control.' Still, Torsten Slok, Apollo Management's chief economist, pointed out in a note on Sunday that the U.S.-China tariff truce reached almost two weeks ago hasn't yet unleashed a surge in ships across the Pacific. "This raises the question: Are 30% tariffs on China still too high? Or are U.S. companies simply waiting to see if tariffs will drop further before ramping up shipments?' Slok wrote. EU-U.S. dispute U.S. tariffs — combined with sudden threats and truces — make it difficult for importers and exporters to calibrate their orders, causing unseasonal swings in demand. For shipping lines, those translate into delays and higher costs requiring freight rate hikes. The latest blow to visibility came Friday, when Trump threatened to hit the European Union with a 50% tariff on June 1, a move that could roil transatlantic trade. "The additional policy uncertainty will be a deadweight cost to global activity by adding risks to decisions on expenditures,' Oxford Economics said in a research note on Saturday. Germany, Ireland, Italy, Belgium and the Netherlands are the most vulnerable given their ratios of U.S. exports to GDP, it said. Bloomberg Economics said in a research note Friday that "additional tariffs of 50% would likely reduce EU exports to the U.S. for all products facing reciprocal duties to near zero — cutting total EU exports to the U.S. by more than half.' Mounting uncertainty about whether Trump would follow through on such a big trade threat or postpone it like he did with China is adding to shipping pressures. Carriers including MSC Mediterranean Shipping, the world's largest container line, had already announced general rate increases and peak season surcharges, starting in June, for cargo from Asia. In the weeks ahead, those are likely to boost spot rates for seaborne freight, the cost of which is still underpinned by geopolitical turmoil. Cargo ships are still largely avoiding the Red Sea, where Yemen-based Houthis started attacking vessels in late 2023, and sailing around southern Africa to ferry goods on routes that connect Asia, Europe and the U.S.. Avoiding 'massive congestion' On the webinar, Habben Jansen said it is still not safe to traverse the Red Sea and indicated that any eventual restoration of regular journeys through the Suez Canal would have to be gradual, perhaps taking several months, to avoid flooding ports with vessel traffic. "If we would from one day to another shift those ships back through Suez, we would create massive congestion in many of the ports,' Habben Jansen said. "So our approach would be that if we can do it, that we do it over a longer period of time so that the ports do not collapse, because that's in nobody's interest.'
Yahoo
17-05-2025
- Business
- Yahoo
Hapag-Lloyd Aktiengesellschaft Just Missed EPS By 16%: Here's What Analysts Think Will Happen Next
The investors in Hapag-Lloyd Aktiengesellschaft's (ETR:HLAG) will be rubbing their hands together with glee today, after the share price leapt 29% to €167 in the week following its first-quarter results. Revenues were in line with forecasts, at €5.1b, although statutory earnings per share came in 16% below what the analysts expected, at €2.51 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. After the latest results, the consensus from Hapag-Lloyd's ten analysts is for revenues of €18.1b in 2025, which would reflect a considerable 9.0% decline in revenue compared to the last year of performance. Statutory earnings per share are forecast to tumble 59% to €5.96 in the same period. Before this earnings report, the analysts had been forecasting revenues of €17.3b and earnings per share (EPS) of €4.24 in 2025. So it seems there's been a definite increase in optimism about Hapag-Lloyd's future following the latest results, with a very substantial lift in the earnings per share forecasts in particular. Check out our latest analysis for Hapag-Lloyd With these upgrades, we're not surprised to see that the analysts have lifted their price target 5.2% to €118per share. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Hapag-Lloyd analyst has a price target of €170 per share, while the most pessimistic values it at €75.00. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business. One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 12% by the end of 2025. This indicates a significant reduction from annual growth of 6.9% over the last five years. Yet aggregate analyst estimates for other companies in the industry suggest that industry revenues are forecast to decline 0.9% per year. So it's pretty clear that Hapag-Lloyd's revenues are expected to shrink faster than the wider industry. The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Hapag-Lloyd's earnings potential next year. They also upgraded their estimates, with revenue apparently performing well, although it is expected to lag the wider industry this year. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving. Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Hapag-Lloyd going out to 2027, and you can see them free on our platform here. And what about risks? Every company has them, and we've spotted 2 warning signs for Hapag-Lloyd (of which 1 can't be ignored!) you should know about. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
