Business, Feature, Freight News, Sea

Hapag-Lloyd Sees Earnings Drop

[ February 8, 2024   //   ]

Liner carrier Hapag-Lloyd, which recently announced the Gemini Cooperative with A.P. Moller – Maersk, reported a significant decrease in earnings in its 2023 financial year.
Group EBITDA was US$4.8 billion, compared with US$19.4 billion for fiscal 2022, which the company attributed to lower freight rates due to the normalization of global supply chains, and the results were expected.
Revenue fell to US$19.4 billion, from US$34.5 billion in the year earlier, due to a lower average freight rate declined 48 percent to US$1,500 per TEU, from US$2,863 per TEU.
Transport volume rose 0.5 percent to 11.9 million TEUs. Hapag-Lloyd said the Red Sea conflict negatively impacted transport volumes, as ships were forced to reroute around the Cape of Good Hope, which extended voyage times.
Hapag-Lloyd will publish its 2023 annual report March 14, with audited figures and a fiscal 2024 outlook.
Hapag-Lloyd operates a fleet of 264 container ships with a total transport capacity of 2.0 million TEUs.
The German carrier and Danish container line A.P. Moller – Maersk, said Jan. 17 they signed a long-term operational collaboration agreement. Gemini Cooperation will start in February 2025 with a fleet pool of about 290 vessels with a combined capacity of US3.4 million TEUs, a 60/40 share between Maersk and Hapag-Lloyd.
The agreement partners have set a target of delivery schedule reliability of more than 90 precent, once the network is phased in.
As a consequence, Hapag-Lloyd will leave THE Alliance at the end of January 2025. Maersk and MSC said in January 2023 that the 2M alliance will also end in January 2025.

The 13,169-TEU New York Express, at the Port of Southampton.