Hapag-Lloyd introduced a newsroom three years ago to accelerate its response to unique situations such as accidents and disasters. How does it work when there is a crisis?
Credits: Photos: Hapag-Lloyd, Thies Rätzke (2x)
Fortunately, only the containers had been hit, and the crew did not suffer any physical injuries. As the ship did not sustain any structural damage, it was able to continue its journey. However, the psychological toll on the crew and all the employees was substantial. “That was an unusual situation,” emphasises Haupt, indicating a paradigm shift.
“At most, we’d only ever been confronted by pirates, which you can prepare for – at least to some degree.” Now there were terrorists attacking cargo ships with drones and cruise missiles, putting the crew, ship and cargo at a substantial risk. “Terrorist attacks with heavy weaponry are a paradigm shift in our industry. There’s nothing we can do about that. Our crews are unarmed,” says Haupt.
As the route that passes through the Red Sea and the Suez Canal is one of the most important, it was essential to make the right decisions. Everyone was aware that diverting cargo ships around the Cape of Good Hope would have a major impact on the network and fleet as well as extend the route from Singapore to Hamburg and Wilhelmshaven by ten to twelve days, even at full speed.
In addition to requiring an increase in ship capacities and affecting shipping schedules, ports and terminals, the detour would also call for longer crew assignments as well as the restructuring of the bunkering schedule, the supply of fresh food and crew rotations. The much longer route would also increase fuel consumption, resulting in higher costs and additional emissions. Some legal issues would also need to be clarified.
Strategic response and communication
“We organised the first crisis meeting after the attack on our ship, with around 25 employees in attendance. Due to the immensity of the impact, we made the decision to set aside a period of three days to allow the experience to sink in and to consider potential scenarios,” reports Haupt. There were approximately ten ships in the region at that time, all of which had to be moored or drop anchor until further notice, as anyone under pressure is more likely to make a mistake.
“On 21 December, we made the decision to stop any Hapag-Lloyd ships from passing through the Suez Canal and the Red Sea for one week. That week turned into another and then another, until additional attacks made it essential to establish the new rule for the foreseeable future and protect the employees on board.”
“Terrorist attacks are a paradigm shift in our industry.”
Nils Haupt, Senior Director of Corporate Communications
Whether it was radio, TV or a podcast, domestically or abroad, business or local press, the intense global media interest was one of the biggest challenges, as it continued unabated into late January, recalls Haupt. “It went from a morning TV interview with the BBC at 7 a.m. to a US American radio station at 10 p.m.”
Fortunately, crises of this severity – when people’s lives are at stake as in the pandemic, in accidents and in war – are rare, he says. The crisis committee convenes in cases like these. “That’s always a must when a company-wide and national response and communication are necessary,” explains Haupt. Communication tends to be limited to local channels when crises occur regionally.
“If we are dealing with the crisis here in Hamburg, we first need to decide which information should be provided to employees, customers and media,” explains Seifert. “The potential severity of the damage is key, but so is the company’s reputation.” This analysis requires a strong internal network: “You need to know who to ask about which topics and who their deputy is – and who would be a good sparring partner for issues like insurance and legal questions. Only then can you provide a valid assessment,” says Haupt.
His communication team at the shipping company currently comprises around 16 employees, including four people who are responsible for customers, two for social media and five to six for internal and external communication. “It takes around half of the employees to deal with a larger crisis,” continues Haupt.
In cases like these, the aim is always to inform managers and employees first, so that they do not learn about it from the media. If convened, the crisis committee tends to meet virtually to decide which information is the most important – and then consults with the board members about which information to share externally.
Everything comes together in the newsroom
Launched three years ago, the newsroom has proven its worth in times of crises, in particular. “There used to be three teams. One team often didn’t know what the other teams were doing,” recalls Haupt. “We also used to respond rather than plan, which we wanted to change. Of course, only 60 to 70 per cent of our activities can be planned. But today we have daily, weekly, monthly, quarterly and annual planning, which works out very well.”
It was also essential to further improve communication between the different departments, which is why there is a meeting every day at 9.30 a.m. to update everyone in the team and inform them of who is responsible for which topics. “We were also interested in simplifying everyone’s work, which is why we’ve provided all the team members with more freedom and individual responsibility,” says Haupt.
The normal workload is generally six to eight press enquiries a day. “There’s usually one topic a month that we have to observe more closely,” explains Seifert. But forward-looking communication – for example, in the quarterly press calls with CEO Rolf Habben Janssen – is also important. “If in doubt, always communicate proactively, clearly and authentically. That reflects our corporate culture, not just in times of crisis,” says Haupt. (cb)
Facts
Hapag-Lloyd
Established: 1847 by Hapag, 1970 merger with the Lloyd company of northern Germany to create Hapag-Lloyd
Headquarters: Hamburg
Area of business: Liner shipping
Team: Around 16,600 employees in over 400 offices in 140 countries
Fleet: 280 container ships, annual transport volume of 11.9 million TEU
Sales: 17.9 billion euros (2023)
“It didn’t make much sense to respond with proactive press releases because breaking news was changing just about every hour.”
Tim Seifert, Corporate Communications Director.
