News / Hapag chief bullish on demand growth, 'thanks to higher schedule reliability'

Photo: Hapag-Lloyd

Hapag Lloyd expects its above-average Q1 market growth to sustain in Q2, CEO Rolf Habben Jensen told The Loadstar on the sidelines of the Transport Logistic conference in Munich. 

The Loadstar previously reported how Hapag-Loyd’s Q1 carryings had grown 9% year on year, to 3.3m teu – double Container Trade Statistics’ market average of 4.2%. 

“I think that’s largely because of the network we have right now,” explained Mr Habben Jensen. “We have this higher schedule reliability, which has two big benefits – one, that our on-time delivery is much better; and second, that we also sail every week.  

“In previous years, we’ve had to blank quite a lot of sailings because of delays. Now we don’t do that, so of course that automatically creates some growth because instead of having, let’s say, eight voyages in ten weeks, you now have ten voyages in ten weeks, and as a consequence you’ll see above-average growth,” he added. 

The German liner’s CEO told The Loadstar that while “it is a bit early to say” if this growth could be sustained for the rest of the year, it looks set to continue in the first half. 

“I think, in the second quarter, we will also see healthy volume development,” he said. “For Q3 and Q4, it’s still a bit early… but of course at some point, we’ll see quarters where there’s not going to be such stellar growth.” 

Mr Habben Jensen’s second-half uncertainty is a reflection of the wider demand environment. 

“I think everybody predicts that volumes are going to ‘fall off a cliff’ [in H2], but I’ve been hearing that prediction for five years. And, of course, it hasn’t happened so far,” he said. 

“I expect that, in the second half, there’s going to be less growth than in the first half. But, in all honesty, the reliable indicators that we have for that are very few,” he added. 

Indeed, when assured he wouldn’t be asked for demand predictions for the rest of the year, a relieved – and probably jaded – Mr Habben Jensen simply replied: “That’s very good.”