Hapag-Lloyd Achieves Robust Half-year Results in a Weaker Market Environment

Hapag-Lloyd has concluded the first half of 2023 with an EBITDA of US$3.8 billion and an EBIT of US$2.8 billion. The Group profit stood at US$3.1 billion. As expected, these results are significantly below the prior-year level.

Transport volumes experienced a year-on-year decline of 3.4%, to 5,807 TTEU (H1 2022: 6,012 TTEU), primarily owing to lower demand for container transports on the Far East and European trade routes to North America.

In addition, a lower average freight rate of 1,761 US$/TEU (H1 2022: 2,855 US$/TEU) was particularly responsible for the decline in revenue, which decreased to US$10.8 billion.

Transport expenses were below the prior-year level, at US$6.3 billion, primarily due to lower expenditures for demurrage and detention and a decreased bunker consumption price of US$625 per tonne (H1 2022: US$703 per tonne).

Jebel Ali Welcomes Hapag-Lloyd's First Dual-Fuel Ultra-Large Containership

Rolf Habben Jansen, CEO of Hapag-Lloyd AG said: “Weaker demand and lower freight rates are having a very noticeable impact on our earnings.

"In a challenging market environment, we can look back on a successful first half year overall, in which we were able to expand our terminal portfolio while also significantly boosting our customers’ satisfaction thanks to our focus on quality.

"In the second half of the year, we will continue to focus on formulating our ‘Strategy 2030’. This strategy will guide us forward on our strategic path to success in 2024,”

For the full year 2023, Hapag-Lloyd confirms the forecast it published on 2 March. EBITDA is expected to be in the range of US$4.3 to 6.5 billion and EBIT to be in the range of US$2.1 to 4.3 billion.

However, the ongoing war in Ukraine, geopolitical uncertainties, persistent inflationary pressures and high inventory levels are creating risks that could negatively impact the forecast.

Read More: Hapag-Lloyd Partners with DB Schenker to Decarbonise Supply Chains