After a very difficult year 2006 in the shipping business with nearly all container shipping lines in the red, SENATOR LINES has boosted its profit and closed the 2007 business year with an operational result of 14 million USD profit. With the implementation of their restructuring programme “Concept 2007”, the Germany-based ocean carrier has moved back into positive figures and paved the ground for further profit.

Last year, SENATOR LINES has managed to improve the average load factor on nearly all of its 14 liner services. On the eastbound voyages the average utilisation of the Bremen-based company was up by 9%, whereas the high load factor of the previous years has been maintained on the westbound traffics.

“The positive development of our results and profit is due to our ‘Concept 2007’,” says Hans-Hermann Mohr, CEO of SENATOR LINES. “This restructuring, implemented by the end of a painful 2006 for all container lines, has enabled us to move back into positive figures”, he adds. “With our centralised lines management and the lean company structure, offering a fast and effective decision process, we can quickly react to new developments and trends.”

The restructuring has also contributed to maintain stable container-related expenses despite the remarkable general cost increase in the market.

“However, in 2008 the permanently rising bunker price is certainly a key factor for the container business results in general and the ones of SENATOR LINES in particular,” says Mark Ehlers, Director Operational Management at SENATOR LINES. “This scenario influences our forecasts for the year-end results 2008 significantly even though our first quarter figures have been very positive”, he adds.

Nevertheless, the Bremen-based container shipping line is confidently looking towards the future and intends to grow – despite the rising fuel costs and mixed prospects of the market. This development has been visible already in the significant capacity increase of the MEX and NMX services in April and May 2008 respectively.

“In the short term, SENATOR will be focusing on the stabilisation of the business and financial structure and maintaining its market position and business,” states Hans-Hermann Mohr. “Furthermore it will be our purpose to re-shape and adapt the structure to upcoming trends and to maintain our high service quality.”

In the mid and long term, SENATOR LINES aims towards growth, as Jens Philippi, Director Commercial Management, explains: “The focus will be laid on the expansion of competitive new niche lanes and businesses in order to achieve a better-balanced business portfolio. Potential ideas and projects are constantly being worked out within the Lines Management and are to be evaluated further. Of course each of these potential projects depends on further individual market development of the respective trade.”

The aim is to develop the specialised German shipping line from today’s one third Senator Lines niche business to a significantly higher percentage of own regional business during the next years.

Source: Senatorlines.com