8,750-TEU ship naming sparks Hapag-Lloyd hopes for growth

DESPITE gloomy talk in the transpacific trades, Hapag Lloyd's top brass struck a positive note for Asia-Europe sea lanes at the recent naming of their new 8,750-TEU mega ship, the Hanover Express, in Hamburg.

"Container transport remains a growth market. And there are no signs whatsoever that this will change," said Hapag Lloyd CEO Michael Behrendt.

"The newbuildings coming on to the market are urgently required to cope with the expected growth," Mr Behrendt said. "Global container transport volume will increase from about 100 million standard containers (TEU) to more than 155 million containers by 2012, according to the forecasting institute, Global Insight. That would mean growth of more than 50 per cent in six years."

Such confidence in the Asia-Europe container shipping market contrasts with gloomy views of lower earnings on US-Asia trade routes next year because of a US housing market slump, rising oil prices and higher North American inland transport costs.

But Hapag Lloyds hopes are pinned on the recovery of Asia-Europe rates this year, and a rebounding European trade boosted by China's continued growth.

To claim its share of the expected growth, Mr Behrendt said Hapag Lloyd would take delivery of 10 new sister ships by 2010, each the same size as the Hanover Express and built by the same Korean Hyundai Heavy shipyard.

The naming ceremony at Container Terminal Altenwerder, in Hamburg, where the ship was berthed, attracted 300 onlookers, including the city's mayor, Ole von Beust, and Hanover mayor Bernd Strauch.

The ship will be deployed on Far East-Europe routes operated by Grand Alliance lines. The Hanover Express will call at Hamburg, Rotterdam, Singapore, Port Kelang and the major ports of China.

The German-flagged ship has a length of 335 metres and beam of 43 metres, making it equivalent in size to three football fields.

With the delivery of the Hanover Express, the Hapag-Lloyd fleet comprises 143 containerships with a total capacity of 500,000 TEU. Hapag-Lloyd transported approximately 2.7 million TEU in the first half of 2007, nine per cent more than in the first half of 2006, the company release added.