Germany's Hamburg Sud Group has announced that revenue from its liner division last year rose eight per cent compared to 2005 to EUR2.69 billion (US$3.66 billion), accounting for 85 per cent of the company's total turnover of EUR3.19 billion representing a rise of 5.2 per cent on the previous year.

A company statement said although the results were "satisfactory", the eight per cent revenue rise in its liner division was "disproportionate" in comparison with the "powerful volume growth" of the previous year.

"A crucial factor here was freight rates, which came under considerable pressure in most services," said the company.

"In view of the pressure on earnings and costs, the result in the liner services fell below that of the previous year and in line with expectations. In comparison with many other major shipping lines, Hamburg Sud made a very respectable showing in the market," the company said.

Hamburg Sud and its Brazilian shipping subsidiary, Alianca, increased cargo volume by 21 per cent to 1.84 million TEU compared to 1.52 million TEU in 2005. Part of the increase was helped by the takeover of the cross-trade operations of the Russian shipping company Fesco; the complete takeover of Ybarra Sud's liner operations between the Mediterranean and East Coast South America and the purchase of the remaining 50 per cent of Ybarra Sud.

The statement said Hamburg Sud's slot capacity of the container vessels deployed in the liner services grew by just one per cent, to 201,000 TEU, as a result of service rationalisation.

The company said that given the aim of further increasing the owned share of ships and containers, the investment volume of the Hamburg Sud Group last year remained at a high level at EUR348 million compared to EUR387 million in 2005.

Commenting on the outlook for 2007, the company said the decline in freight rates experienced since mid-2005 has now come to a halt in most of Hamburg Sud's trades. Since mid-2006 earnings gains have been made, though without reaching the level of previous years.