Hapag-Lloyd posted a group profit of $1.8 billion for the first nine months of 2024, finishing the period in a strong position despite lower freight rates and rising transport costs.
The group’s earnings before income tax, depreciation and amortisation (Ebitda) stood at $3.6bn for the period.
“In view of lower freight rates in the first half of the year and increased transport expenses due to the rerouting of ships around the Cape of Good Hope, these results are below the prior-year level, as expected,” Hapag Lloyd said in a statement.
However, stronger demand and higher freight rates in the third quarter led to a significant increase in earnings compared to the previous quarters of 2024, the company added.
In the liner shipping segment, transport volumes increased by 5% to 9.3 million TEUs, up from 8.9m TEUs in the same period in 2023. However, the segment’s revenues fell by 2% to $15bn, in particular due to a lower average freight rate of $1 467/TEU compared to $1 604/TEU for the same period in 2023. Ebitda decreased to $3.5bn (EUR 3.2bn).
The terminals and infrastructure segment recorded a significant increase in sales and earnings in the first nine months. Ebitda rose to $114m (EUR 105m). Since the segment was founded in the second half of 2023, the results are only comparable with the previous year’s figures to a limited extent.
Hapag-Lloyd CEO Rolf Habben Jansen said the first nine months of the year had been marked by “unexpectedly strong demand”.
“Despite the tense security situation in the Red Sea and the associated rerouting of ships, we were able to further increase our transport volume compared to the previous year and can look back on a good result overall,” Jansen said.
“At the same time, we have commissioned an extensive newbuild programme for 24 ships, with which we will further modernise and decarbonise our fleet and thereby secure our long-term competitiveness,” he said.
He added that the line had also made “good progress” in building up its terminal business under the Hanseatic Global Terminals brand.
“Looking ahead, we will continue to vigorously implement our Strategy 2030 while focusing on our growth and quality targets,” Jansen said.
In view of the recent higher-than-expected demand and improved freight rates – and despite increased transport expenses – the executive board raised its forecast for the current financial year on October 24.
The group’s Ebitda is expected to be in the range of $4.6 to 5bn and group earnings before income tax is forecast to be between $2.4 to 2.8bn.
“Given the highly volatile development of freight rates and persistent major geopolitical challenges, this forecast remains subject to uncertainty,” Hapag-Lloyd said.
