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UPDATE 1-HHLA sees 2009 container shipping volumes dropping

Published 03/31/2009, 09:25 AM
TTEF
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* Sees volumes between Asia and Europe down

* Also sees volumes in Baltic region declining

* Says 2008 hurt by declining East Asia North volumes

(Adds 2009 outlook, details, background)

FRANKFURT, March 31 (Reuters) - HHLA said it saw 2009 container shipping volumes on routes between Asia and Europe as well as to and from the Baltic region declining sharply as global trade dropped amid the economic crisis.

"For the first time since the container was introduced more than 40 years ago, the global container handling volume appears likely to decrease," the Hamburg-based logistics company said after publishing 2008 results that met market forecasts.

HHLA ships containers in and out of Hamburg, Europe's second-biggest port after Rotterdam in terms of the number of containers put through.

Shipping companies around the world are suffering from declines in global trade. Their woes are compacted as they receive delivery of container ships they ordered years ago when the economy was stronger, and are now not needed.

The World Trade Organization last week forecast that global trade volumes would fall 9 percent this year, the strongest contraction since World War II as demand collapses in the biggest economic downturn in decades.

Eivind Kolding, chief executive of the world's biggest shipper A.P. Moller-Maersk, has said he expected all container shipping companies to lose money this year.

HHLA said a slight decline in the number of containers sent from the East Asia North region, which includes China, already hurt volumes in 2008. That region accounts for around 40 percent of total container traffic at Hamburg's port.

The drop in global trade would also hit overland shipping by road and rail, HHLA said. Only some market segments, such as coal handling for power stations or fruit handling for everyday requirements would be more robust this year.

HHLA's 2008 net profit in the stock-listed port logistics division rose more than 40 percent to 154.5 million euros, meeting analyst estimates. It said it would raise its 2008 dividend to 1.00 euro per share from 0.85 euro a year earlier. (Reporting by Maria Sheahan; Editing by Jon Loades-Carter)

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