Investments are a matter of trust

Up-to-date information for ship`s investors

After a brief recovery, current market developments once again pose a major challenge for shipping. In 2011 freight rates for container vessels collapsed again compared to the beginning of the year. In the tanker sector the recovery failed to materialize entirely, this segment is still under pressure since the beginning of 2009.

Unfortunately the signals from the markets do not indicate a rapid recovery. In contrast to 2008 the sharp decline in charter rates is not due to a declining growth of the global economy and the world trade. In container shipping it is mainly ships with a capacity of more than 10,000 TEU that put pressure on the freight rates resulting in a hard competition for market shares between liner shipping companies followed by a ruinous price war.

But none of these developments in container shipping arise from the current market situation, but rather from the irrational behaviour of some market participants. On the contrary, the market conditions have to be assessed as positive. Despite the current corrections the expected growth rates for the economic output and for the world trade are above the long-term average level. Therefore it is to be hoped that the destructive predatory competition will stop fairly quickly. The sooner this happens the sooner the markets will recover.

In the field of tanker shipping the gap between available tonnage (supply) and demand for transport of crude oil and oil products has widened further. In 2011 the only moderate growth in worldwide demand for liquid cargo, the delivery of already ordered newbuildings, the low number of scrappings as well as the still existing fleet by approximately 400 single-hull tankers worldwide still burden the tanker market. According to our forecasts the reduced future supply and a recovering in demand for transport build the basis for the nevertheless relatively positive estimation of the development in the charter market for tankers in our size-classes (see: Market update).

We at Hanseatic Lloyd are aware of our responsibility and also act accordingly. As a ship owner we have a common key goal in close cooperation with our investors: The successful operation of our vessels! Now and in the future we assure you that we will concentrate on this with the highest degree of commitment, our experience and also strength.

Capital on the high seas

Shipping is a capital-intensive, but also economically promising undertaking.With a highly qualified staff possessing extensive shipping experience the Hanseatic Lloyd shipping company concentrates exclusively on this field of business.

We offer interested investors the opportunity of participating in our projects on the shipping market. The number of corporate issues is not decisive for us as a classical shipping company, but rather successful operation of the vessels – a common goal for all investors.

Our circumspect business policy of not investing in new ship projects for the time being in the light of the way in which the markets and construction prices are developing has proved to be correct. Today we are benefiting from the decisions which we took in the past – and also from our chartering out policy that is based on long-term sustainability.

Hanseatic Lloyd Reederei
GmbH & Co. KG

– An ISO 14001 certified company –

Contrescarpe 45
28195 Bremen
Germany

Phone: +49-(0)421 / 24 338-0
Fax: +49-(0)421 / 24 338-28
investments@hll-reederei.de