Hapag-Lloyd to Not Invest in Newbuildings in the Near Future

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Image is for representational purposes only. Courtesy: Hapag-Lloyd

In a statement released on Tuesday, Hapag-Lloyd revealed that it does not plan to invest in newbuildings for the next few years.

In the wake of its recent merger with United Arab Shipping Company (UASC), the company is satisfied with the additional vessel capacity and is convinced that its demand will be met suitably.

In an investor report, the firm stated, “Following the completed takeover of UASC’s container shipping activities, Hapag-Lloyd will not invest in new ship systems in the next few years. The joint fleet should make it possible to utilise the medium-term expansion opportunities resulting from market growth and to realise economies of scale in ship operations.”

Hapag CEO Rolf Hauben Jansen, added, “If you look at the orderbook, we have very few new orders and the orderbook is starting to be depleted. We have no new vessel investments planned in the next years because we will try to maximize free cash flow and try to deleverage over time.”