Hapag-Lloyd generates strong H1 results

Hapag-Lloyd generates strong H1 results

Hapag-Lloyd has reported an EBITDA of $3.8 billion and an EBIT of $2.8 billion for the first half of 2023.

The total profit for the group was $3.1 billion. As predicted, these figures are much lower than the previous year.

Transport volumes fell 3.4 per cent year-on-year (YoY) to 5,807 TTEU (H1 2022: 6,012 TTEU), attributable mostly to reduced demand for container transportation on Far East and European trade routes to North America.

Furthermore, a lower average freight rate of 1,761 USD/TEU (H1 2022: 2,855 USD/TEU) was a major contributor to the income fall of $10.8 billion.

Transport expenses were $6.3 billion lower than the previous year, owing mostly to lower demurrage and detention costs and a lower bunker consumption price of $625 per tonne (H1 2022: $703 per tonne).

READ: Hapag-Lloyd wraps up SM SAAM purchase

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.”

Hapag-Lloyd reaffirms its projection for the full year 2023, which was released on 2 March 2023. EBITDA is forecast to be in the $4.3 billion to $6.5 billion range, with EBIT in the $2.1 to 4.3 billion range.

However, the ongoing conflict in Ukraine, geopolitical uncertainty, sustained inflationary pressures, and high inventory levels all pose threats to the prediction.

In August 2023, Hapag-Lloyd entered into a Conversion Commitment Agreement with MAN Energy Solutions (MAN) and Seaspan Corporation (Seaspan) to equip its fleet with engine retrofit kits to run on methanol.

That same month, Hapag-Lloyd announced a new Peak Season Surcharge (PSS) coming into effect from East Asia to North America

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