Germany-based cargo container shipping line Hapag-Lloyd has revealed its new mid-term ‘Strategy 2023’ with an aim to improve customer-service capability, support selective global growth, and become profitable.
The strategy focuses on multiple elements, including key cost initiatives on network optimisation, terminal collaboration, as well as further strengthening procurement and container steering.
It will also focus on an optimised revenue management to guarantee that the most attractive cargo gets on-board.
Hapag-Lloyd also plans to amend its structures, systems, processes and operations to better serve its customers.
Hapag-Lloyd CEO Rolf Habben Jansen said: “Size is not the name of the game anymore, but customer orientation. It is obvious that customers expect more reliable supply chains, so our industry needs to change and invest more.
“At the same time, we know that people are prepared to pay for value. Going forward, delivering value to get the most attractive cargo on-board is at the heart of our new Strategy 2023.
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“To be number one for quality is the ultimate promise to our customers and a strong differentiator from our competitors.”
Hapag-Lloyd is also expected to make additional investments in digitalisation and automation as part of this strategy.
The company also aims to increase the share of its online business by 15% via web channel by 2023.
On the financial front, Hapag-Lloyd intends to generate economic value by offering a return on invested capital (ROIC), which is higher than the weighted average cost of capital (WACC) by 2023.
The company has commenced a cost management programme to save $350m to $400m, and to ensure a competitive cost position after launching ‘Strategy 2023’.