Hapag to suffer loss this year and next: Klaus-Michael Kuehne

GERMAN container shipping line Hapag-Lloyd is expected to post further losses in 2010, according to Klaus-Michael Kuehne, one of the biggest investors in the Albert Ballin consortium, which owns 57 per cent of the Hamburg carrier.

"I don't expect a profit at Hapag next year either," the German logistics billionaire was quoted as saying in an interview with Germany's Welt am Sonntag newspaper. "However, I think the worst is behind us."

Mr Kuehne said volumes and rates were increasing, while cost-cutting measures had also benefited Hapag-Lloyd. TUI, the German tourism group that holds the remaining 43 per cent equity interest in the carrier, will not sell its stake in Hapag-Lloyd any time soon, he said.

"TUI can only get out once Hapag has a convincing business model, otherwise it will not find a buyer for its stake," he said.

Mr Kuehne said in the interview with Welt am Sonntag that he favours an eventual merger of Hapag-Lloyd with another large shipping company, however, the headquarters of the merged entity must remain in Hamburg.

Reuters earlier this month cited a source familiar with the situation as expecting the ocean liner to post an operating loss this year of US$1 billion to $1.2 billion. Another source added the carrier expected to suffer an operating loss of around $500 million in 2010.

Source:www.schednet.com