Hapag-Lloyd anticipates inevitable 2023 decline

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Hapag-Lloyd anticipates inevitable decline for 2023

Hapag-Lloyd has witnessed a successful 2022, with a significant increase in profits up to $18 billion.

The company’s EBITDA increased to $20.5 billion, while EBIT grew to $18.5 billion, in line with its previous forecast.

Revenues hit $36.4 billion primarily driven by an increase in the average freight rate.

Towards year-end, the freight rate experienced a significant decline owing to the alleviation of port congestion and reduced demand.

Regardless, Hapag-Lloyd’s transport volumes remained consistent with the previous year at 11.8 million TEU (compared to 11.9 million TEU in 2021).

“Overall, we look back on a very successful 2022 with exceptionally strong results. This has enabled us to strengthen our financial resilience and asset structure once again,” said Rolf Habben Jansen, CEO of Hapag-Lloyd AG.

“In addition, we have improved the quality of service for our customers and invested in terminals and infrastructure as well as in the efficiency of our fleet. However, costs – such as for fuel, charter vessels and container handling – have risen significantly.”

READ: Hapag-Lloyd goes ahead with new 3 million TEU terminal in Egypt

Jansen added that despite a decent start to the current financial year, a substantial decline in earnings is inevitable due to a cooling economy.

Hapag-Lloyd is anticipating a gradual normalisation of earnings during the current 2023 fiscal year, with an expected EBITDA range of $4.3 to $6.5 billion and EBIT range of $2.1 to $4.3 billion.

The company said it will maintain flexibility in the market and focus on cost management and sustainability.

Just recently, Hapag-Lloyd and Shell signed a multi-year agreement to supply liquefied natural gas (LNG) to the German carrier’s ultra-large container vessels.

The bunkering of 12 23,500+ TEU vessels is set to take place in the second half of 2023 at the Port of Rotterdam.

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