Interview with Andy Van den Abeele – “We have done great things!”

How satisfied are you with how things are going for us in Latin America?

Even though our Region has been hit very hard by the pandemic, our business itself has stayed pretty solid. Of course, we saw a drop in our export volumes. Year-to-date, we are handling more volume than last year from Central and Latin America.

What’s the secret behind our solid performance?

It’s not really a secret. A significant part of our export business consists of foodstuffs, with a strong focus on fruits and perishables. We transport anything from fruits and vegetables to wine, coffee, nuts, seeds, rice, etc. People have obviously continued to eat during the pandemic – perhaps even a little more than before. One country that has been hit even harder is Mexico. The exports from Mexico are mostly manufactured goods, such as for the automotive industry or electronics, and less foodstuffs, as in the rest of our region.

What are our “champion” locations in terms of export growth?

We have three areas that have done particularly well compared to the previous year: Chile, Central America, and Ecuador. In Chile, the growth is not even due to foodstuffs, but rather to other commodities, such as copper and wood. In Central America and Ecuador, our success has been driven by reefer cargo.

How is the intra-American trade developing?

The intra-American trade was hit a little harder during the pandemic, and our business decreased by around 2 percent this year. But the recovery has almost been as strong as in the other trades, and we are catching up. Our forecast for next year is still very positive, and projects a 4 percent increase for the intra-Latin American trade.

How is currency devaluation impacting our business in your region?

First of all, it’s important to point out that the depreciation of the currencies in Latin America is not happening just because of the pandemic, as this was a trend that had already started beforehand. But you are correct to say that most currencies in Latin America have lost value – most notably, the Brazilian real and the Argentinian peso, but also the Chilean peso. While this makes exports cheaper, it makes the import business more expensive.

If you look at the countries that have been most affected by COVID-19, around 50 percent of them are in Latin America. How is the pandemic influencing those countries?

It has been a long eight months since the pandemic hit Latin America. Of the top 10 most affected countries, five are located within our region: Brazil, Colombia, Peru, Argentina and Mexico. In fact, Region Latin America is probably the most heavily impacted region in the world. Even though the pandemic didn’t spread here until well after it had hit Asia and Europe, many countries started taking preventative measures early on. That means that there has been some kind of lockdown or curfew in place here since March. The population here has endured very severe lockdowns. Here in Chile, we still have a curfew after 11 o’clock at night, and some cities still have lockdowns.

But aren’t industry and businesses still operating?

In all of these countries, essential businesses are allowed to continue to operate. So, most factories can produce goods, and workers are allowed to work in the fields. Almost all of our key industries are considered essential, and we are keeping the supply chains running. This is the reason why Hapag-Lloyd’s business has not been hit as hard as you would expect.

How is our goal of becoming the “number one for quality” being perceived by our customers?

It might be a bit too early to tell. Especially in these past months, customers have been very focused on business. However, I am very interested to see the results of our next customer survey, which we expect to have within the next few weeks. This will give us a very clear picture of how our customers have rated our performance during this challenging time. In any case, I’m confident that our performance is seen positively right now.

How did Hapag-Lloyd handle the pandemic with respect to its employees?

I think we have done great things during this pandemic – not just for the business, but also for our people. In Latin America, we have tried to use the situation for positive things, as well. We have kept the team close even if it was just online, such as with virtual happy hours. We have sent video messages or little care packages to our colleagues. From what I have heard, people have really appreciated our efforts.

What have you personally missed during this pandemic? Perhaps Belgium, your home country?

Well, I’ve been in South America for many years now, so I feel very much at home here. But I do miss traveling, for both business and vacations. For me, it was truly like jumping from one extreme to the other. Before the pandemic, I hardly spent any time at home. Now, I’m home all day and have not been able to go out at all during the pandemic. One nice thing about the pandemic is that I have gotten to spend more time with my family. My daughter studies in Chile. And my son, who lives in the Netherlands, came to Santiago de Chile when the pandemic started in March. He then stayed here until September, which was fantastic. I’m trying to make the best of the situation and stay healthy.