Hapag-Lloyd is a multinational German-based transportation company. It is composed of a cargo container shipping line, Hapag-Lloyd AG, which in turn owns other subsidiaries such as Hapag-Lloyd Cruises. The container transport arm of Hapag-Lloyd AG is currently the world’s fifth largest container carrier in terms of vessel capacity.
The company was formed in 1970 by the merger of two German transportation/maritime companies, Hamburg America Line (HAPAG), which dated from 1847, and HYPERLINK “https://en.wikipedia.org/wiki/Norddeutscher_Lloyd” o “Norddeutscher Lloyd” Norddeutscher Lloyd (NDL) or North German Lloyd (NGL), which was formed in 1856.
Since its formation, Hapag-Lloyd has been sold to many organizations and has also undergone numerous mergers with other companies. For instance, Hapag-Lloyd was completely acquired by, and became a subsidiary of TUI AG (Hanover) in 1998. This major event was followed by TUI selling a majority stake of Hapag-Lloyd to various private investors in Hamburg in 2009 and again in 2012. Other important events in the company’s history include Hapag-Lloyd’s acquisition of CP Ships in 2005 as well as Hapag-Lloyd’s merger with CSAV in 2014 and United Arab Shipping Company in 2017.
Currently, the company is owned by several public and private investors, with majority stake controlled by CSAV.
About Us.219 modern ships, 9.8 million TEU (Twenty-foot Equivalent Unit) transported per year, around 12,500 motivated employees in 125 countries. Hapag-Lloyd is a leading global liner shipping company and a powerful partner for you.
Hapag-Lloyd offers a fleet with a total capacity of 1.6 Million TEU, as well as a container stock of more than 2.3 million TEU including one of the world’s largest and most modern reefer container fleets. A total of 120 liner services worldwideensure fast and reliable connections between more than 600 ports on all the continents.
The owners of Hapag-Lloyd are CSAV (25.5%), Kühne Maritime (20.5%) HGV Hamburger Gesellschaft für Vermögens- und Beteiligungsmanagement mbH (13.9%), Qatar Investment Authority (14.5%), the Public Investment Fund on behalf of the Kingdom of Saudi Arabia (10.2%), plus a free float of 14.5% (percentages have been rounded and the free float includes institutional shareholders with a shareholding of less than 5%).
Strategy ; Outlook
The prime strategic objective of the Hapag-Lloyd Group is to achieve long-term profitable growth measured on the basis of developments in the transport volume and the key performance indicators of EBITDA and EBIT.
The growing global demand for container transportation is the very foundation of the organic growth which Hapag-Lloyd hopes to achieve. IHS Global Insight (March 2018) has forecast a rise in global container shipments of 5.3 % to around148 million TEU in 2018 and a further 5.3 % to approximately 155 million TEU in 2019. Hapag-Lloyd intends to increase the transport volume organically in line with market growth.
The generation of sustainable cash flows, solid corporate financing, and therefore in particular a sufficient liquidity and equity base, are once again key cornerstones of the Hapag-Lloyd Group’s corporate strategy in the 2018 financial year.
The 2018 financial year will remain focused on the realisation of synergies from the merger with UASC as well as the continuous operational implementation of the THE Alliance. The synergies from the merger with UASC should contribute around USD 435 million a year from the 2019 financial year onwards. The Executive Board of Hapag-Lloyd AG estimates that it will be possible to achieve up to 90 % of these synergies in 2018. One-off expenses of approximately USD 3 million were incurred in the first quarter of 2018 from the transaction and implementation of the merger. It is currently assumed that further expenses of approximately USD 7 million for the full integration of UASC’s container shipping activities could be incurred by the end of the first half of 2018.
Our Sustainability Policy expresses our current and future commitment to protect the environment, provide the highest service quality, care for employees’ health and safety, and ensure satisfactory return on capital.
Hapag-Lloyd is an innovative company within the global container liner shipping industry. As an environmentally oriented company, we place high priority on environmental issues in managing our business. We will continue to seek inventive ways to conserve global resources and protect the environment. This is proof of our commitment to the environment and society.
As a quality oriented carrier, we have structured our processes throughout our worldwide organisation in a systematic manner we strive to meet the high expectations from our customers, business partners,employees, and other stakeholders. We are continuously aiming at fulfilling our customer’s current and future needs in order to ensure customer satisfaction.
Being a responsible company, we ensure a safe and healthy work place is provided to all our employees. Our highly motivated employees are the basis of our success. Awareness is raised throughout our worldwide organisation to recognise our sustainability commitments. The services we offer are a product of successful cooperation of many people worldwide.
Hapag-Lloyd considers the key internal and external factors which impact the organisation as well as interests of our stakeholders. The resulting opportunities and risks are being analysed.
This policy is available to the public.
The Management exemplifies a culture focused on sustainability that encompasses the quality of our services, environmental protection, employees’ health and safety as well as profitability. Staff are encouraged to emulate this. The following principles are communicated to all persons working for or on behalf of Hapag-Lloyd:
The basis for all our sustainable activities requires the adherence to and compliance with all relevant laws and regulations.
The Management uses clearly defined measures to monitor, develop and achieve our quality and environmental targets. These targets are regularly documented, reviewed and communicated.
Customers are our partners. We aim to provide customer satisfaction at all times by being aware of their requirements. We closely cooperate with our customers in order to increase quality and minimise the impact on the environment.
The hallmark of our efficiency is marked by our well trained and competent employees as well as our excellent equipment.
Based on an open dialogue with our customers, business partners, employees, and other stakeholders we continuously improve our high quality, ecological and safety standards.
Avoiding mistakes is an important objective.
The prevention of accidents with possible implications for people, environment, cargo and assets has high priority. Precautionary measures are in place worldwide.
We provide a safe and healthy working place for all our employees.
Adherence to the standards of conduct set out in the Hapag-Lloyd Global Code of Ethics is a binding requirement.
Standards that we apply to ourselves also apply to our sub-contractors. It is not they, but we who vouch for the services provided with the company’s good name.
As a leading liner shipping company it is Hapag-Lloyd’s current and future commitment to protect the environment, provide the highest service quality, and care for the health and safety of our employees.
Therefore, our overall goals are:
to reduce carbon emissions
to develop environmental awareness
to deploy state-of-the-art technology
to enhance sustainable operations
to have an active dialogue with our stakeholders
to act as a responsible employer
At Hapag-Lloyd we strive to reach our defined goals by implementing various technical, operational and shore based measures:
Reduction of fuel and energy consumption
Optimised turn times and utilisation of capacity and equipment to lower fuelconsumptionTo and from seaports: Priority for environmental friendlier modes of transport. Whenever feasible we are using barges or trains instead of trucks.
Environmental requirements for subcontractors
Promotion of E-Solutions such as E-Business, E-Learning and E-Meeting to ensure highquality and reduce business travel
Worldwide ongoing staff trainings on environmental and safety issues
Decision Making Structure of Hapag Lloyd Lanka (Pvt) Ltd
Our Internal & external environment
Internal Environment. –
An organization’s internal environment is composed of the elements within the organization, including current employees, management, and especially corporate culture, which defines employee behavior. Although some elements affect the organization as a whole, others affect only the manager.
-Wealth of experience ; professional Management
Best talent in service
-Less punctuality of employees
-Higher labour turnover
-Lower increments ; salaries
-Delay in promotions
-Be a best service provider in region
-On time delivery
– Emerging global markets; new customer segments
-Increasing operational cost
Contemporary talent management ; human resource management strategies, succession planning to train and mentor next line of leadership.Regular training ; awareness sessions to employees at all levels.Addressing Weaknesses-
Giving better ; attractive benefits to employees
Treating them well to retain them in the organization.Employees are not compensated in a manner they deserved as they overwork, but not rewarded.
Salary increments for deserving employees to motivate them.Ensuring that correct employees are rewarded with the correct positions.Addressing Opportunities-
Developing new services to address global trends ; demands.Exploring business ventures beyond existing geographical presence.Introduce new software system to mange all works.
Establish risk managements team to provide solutions.
Be a best among the competitors
Improve current business process ; eliminate unnecessary actions to reduce the operational cost.
An external environment is composed of all the outside factors or influences that impact the operation of business. The business must act or react to keep up its flow of operations. It can be,
Political Factors (P)
Economic Factors (E)
Social Factors (S)
Technological Factors (T)
Political and Legal Factors
Sri Lanka is a democratic, socialist republic and a unitary state which is governed by a semi-presidential system, with a mixture of a presidential system and a parliamentary system.
It constitutes a parliamentary system governed under the Constitution of Sri Lanka. Most provisions of the Constitution of Sri Lanka can be amended by a two-thirds majority.
Sri Lanka has gone through a changing political scenario over the years and specially after the end of the civil war in 2009 and have gained a considerable political stability as the present government has a majority in the parliament. Recently government has decided to allow shipping line principles can directly invest here without local investor. So this will affect all shipping agencies in sri lankaEconomic Factors
Sri Lanka is recognized as a fast growing middle income country. According to the International Monetary Fund, Sri Lanka has a yearly gross domestic output of US
$64billion as of 2012.It has a GDP of US $158billion in terms of purchasing power parity. Sri Lanka is in terms of per capita income, with anominal value of US$2,435
and PPP value of US $5,220.It recorded a GDP growth of 8.3%in2011. ( International Monitory Fund, 2011)
The Global Competitiveness Report published by the World Economic Forumhas listed Sri Lanka as a transitive economy, from factor-driven stage to efficiency-driven stage, ranking 52nd in the global competitiveness and 41st in goods market efficiency out of the142 countries surveyed. Dow Jones classified Sri Lanka as an emerging market in2010, and Citigroup classified it as a 3Gcountry in February
2011.Sri Lanka ranks well above other South Asian countries in Human Development Index (HDI) with0.658points.
At present government has increased VAT percentage to 12% to 15% .Not only that but also Exchange rate is too high. So importers bit worried about current economic situation ; as a result Import volume is going down.
Sri Lanka has a population of little over 20 million people
and is far ahead of her South Asian neighbours in the accomplishment of human development goals. Life expectancy at birth is currently 75yrs and is close to the estimated lifespan in the developed countries. A high literacy rate of 92.5% has helped the nation to build a skilled labor market. Low mortality rates of 14 in 2010
and the steadily declining population growth of below 1%; reflect the country’s
progress in the sphere of social development.More than 67% of the populationis in between 15 to 64 years old and as a result the country has a big skilled labor force.
In addition a large workforce means that they are ones who would be spendingmoney and it is another indication that this tropical labour market would reachthe herbal products from Britain even though the cost is high.
After the war, with the rapid development of private financial sector, manyyoung peolpe have absorbed moderen trends and fashon a spending large amontof money for pleasure and beauty.The growing number of Tv channels andother digital mass media networks are a fine indicator to showcase suchdevelopments taking place in the changing attitudes and consciousness of people.
Based on Population & their interest various cargo items imported & it will vary time time.
Technological Factors.Sri Lanka has a fastest growing technology among the region. When we consider about the telecommunication, mobile technologies, IT infrastructures all are developed very well. So we can use these things to improve our business. We can use to provide greater service that the competitors.
Hapag Lloyd Lanka is a company consists with few departments. Based on their functions these departments have established. They are Imports, Exports, Marketing, HR, Operations & Finance.
Since this is a large organization, we consider about the Imports Department & it’s identified key problems.
Main Process of Imports Department.Check all BLs ; enter all details in the manifest to our current computer system
Download Import Cargo Manifest
(soft /hard copies)
Coordinate with last ports of call ; Complete BLs on time
Prepare online cargo Manifest
Submit online cargo manifest to
SL Customs ; SLPA
Once vessel arrived issue Delivery order for cargo clearance to the consignees / customers.
Problems which we can identify with regard to the Import Process.As per the local rules ; regulations we must file Import Cargo Manifest 72 hours prior to the vessel arrival. (3 days before). For that we have to be much punctuated. Otherwise we would not be able to complete the manifest on time. So we need to run above processes smoothly ; cleanly.
Shippers not providing their shipping instructions on time, as a result lording ports people unable to complete BLs (Bill of Ladings) on time. If BLs are not completed we cannot finalize the vessel on time ; as a result heavy penalties involved.
The process which we use in Imports is totally manual process. So it takes too much time to finalize the vessel. Not only that but also errors can be occurred while we entering the data to system.
Finally when we consider about the latter part, the clearing process our consignees / their clearing agents have to deal with Sri Lanka Customs ; Port Authority offices. They are not friendly staff ; always complains there are errors in documents ; therefore asking corruptions to release the delivery.
Underlying sources and causes and effect relationships of the problems
As agents convey the massage to Port of loading in advance and inform to complete all the Bill of ladings to comply with prevailing import 72 hours manifesting rule prior Vessel arrival to Colombo,SL.In accordance all the Agent must be punctuate and adhere to the rule and complete all their Bill of Ladings in FIS on time.
Agents should improve the awareness of shippers about the importance of providing shipping instruction on time and its repercussion. As a solution can be introduced web based Hapag Lloyd information System( HIP) and its easy accessibility.
In order to avoid delays of manual manifest submission can be suggested system process which could submit from Hapag Lloyd system to SL Customs directly.
Reduce Custom Officers involvement for import process Transactions. Instead of Introduce more efficient system through transaction process.
Part 2 of the assignment
1.Custom authorities want have an overview of who is among what to whom and from where custom manifests help authorities with security ,risk analysis , risk assessment, risk management, Counter terrorism and customs control.
Customs wants to carriers and NVOCSS to submit a manifest to submit a manifest (bill of loading information) to CBP hours before cargo is loaded into vessels.
The purpose of the rule is to enable Sri Lankan Customs and boarder protection (CBP) to analysis container content information before a container is load and there by in advance on it’s loading or non loading status.
In case of non compliance with the rule the most serious consequence world be the bolting of loading a unloading and a consequent disruption of cargo flous and supply chains. Furthernoon
CBP imposes fine or other penalties on the carrier of bills of loading. A a exam supplier, Shippers and other agents.
Hapay Lioyd manifest all handle to the manual system. it’s mean ther is a manual data processing process. It will take a considerable time. Because sometime they have a lots of goods for entire the full manifest. Sometime they can’t enter this all information before the import cargo manifest 72 hours prior to the vessel arrival.
And there are is another problem in this process this department also so specialization in there are job. But same time face t o human errors this system. Because lots of informations mean lots of stress. As a this manual system also create a big problems in this import system.
And in this time company have an another big big responsibility . Because they must do and return to manifest 3 days before in customs.Approach to regulate identified issues and justification of Hapag-Lioydthere are mainly two approaches based on this situation.
Manipulation and co-option
facilitation and support
In First situation
where other tactics will not work or are two expensive. Our problem is customs rules and regulations. As a hapag-lioyd face a some difficulties. Already I explained about first paragraph. This issue covered means there are spend more cost, time and waste. And create an another problem with customs. It’s means can lead to future problem if people feel manipulated.
Second approach is facilitation and support.
Where people are resisting becomes of adjustment problems. Sometime hapag-liyod manual entering system create employee dissatisfaction and employee turnovers. Because this system can create a lot of errors in manifest. As a always employees face a high level of stress. And solve mean can be time consuming, expensive and still fails.
But in this two approaches gives some ideas about how to solve this problems as a example , It can be a relatively quick and inexpensive solutions to resistance problems. And employees always try to do best.
2, Shippers not provide shipping instruction on time.
Shippers should provide information’s the quantity of a good/services that seller will make available at a given price and a certain time in a specific market by the exporter providing instruction pertaining to a shipment, as in consignment the act of handing over cargo to a carrier. When the shippers are not providing shipping instruction on time again buyer or ship’s Broker may be required documents either by email or by relevant import station. Because of this reason buyer have to pay extra chargers/expenses and also buyer cannot prepare the manifest (Summery of the bill of loading issued by a carrier for a particular voyage of a particular vessel or vehicle) and bill of loading (A detailed list of a ship’s cargo in the form of a receipt given by the master of ship to the person consigning the goods) on time
Custom officers / SLPA Officers not friendly People. It is very difficult to work with them.
When the buyer has received carrier confirmation of arrivals, the clearance process spring into actions. Electronic clearance request and documents must be present without delay otherwise goods could be delay and could incur rent and demurrage cost. In any case, goods should be presented at the earliest possible movement. And also Clearance Procedure are subject to change at short notice and byers need to be alert to these. This is true around the time of a budget announcement. However there are occasions when the clearance are not done in properly. Therefor buyer have to be remind about the clearance. Sometimes they expect underhand money. Because of this case they waste time and Money to do the clearance.
Part 3 of Assignment
1.Intervention for undertake the issues.
A typology of interventions based on focal issues mainly interventions are “a set of planned actions or events intended to help an organization increase its effectiveness” they purposely disrupt the status quo in order to move the organization to a more effective state.
In our problems link with
1) human Resource
2) techno Structural interventions
human resource interventions can in crease employee wellness interventions and it can do employee assistance and stress management programs. Because hapag-lioyd import department have a very big responsibility about finalize a manifest before 3 days. As a there are always work hard and with high level of stress. And another thing is there are always work with lot of communication bonds as a their work with group system, as a example seller to buyer .As a workforce diversity intervention can help to employees. it’s mean designed to respond differently to the needs of different groups in the organization and work with different people.
Techno Structural interventions.Hapag-Liyod manual manifest entering system always create a same probltems and it’s waste time, money and increase a employee dissatisfaction of there are carriers. This tchno structural intervention gives good solutions for that.
1) Structural design- finding the most effective ways of structuring activities. As example we can use automated systems for this entering system. And next we can create a good software or something for this. And this can improve, co-ordinate departments for this entering system as a I ts think it can it can reduce lots of manual errors in entering system.
2.The problems of shippers not providing shipping instruction on time, shipper can submit electronic shipping instructions to multiple carriers. They can minimized the communication cost on fax, mail and phone providing shipping instruction on time. The company can improved data accuracy and quality.futhermore shipper have ability to submit electronic shipping instruction to carriers not offering such service. Shipper can improved documentation on turn time and also they have to 24 hours accessibility provide shipping instruction and both 2 parties should have minimize the reliability on stable internet connection.
Custom officers are not friendly with people .But these facts can be avoided by mixed facts. Introduce new code of ethics for custom officers. The code of ethics and conduct describes, in very practical and clear terms, the minimum standards of behavior required of all customs employees. these standards of behavior shall be demonstrate by all custom employees and are to serve as guide when making decisions and taking actions. Another solution is use automated system, the automated system for customs data is a computerized system it is useful to control their core process and also Use another party to monitor the custom officers well. These invention will be approprite to get a good relationship with custom officers and customers.