Hapag-Lloyd has revised its 2024 earnings outlook, citing stronger-than-expected demand and higher freight rates.
Preliminary figures show that the company achieved earnings before interest, taxes, depreciation, and amortisation (EBITDA) of about USD 3.6 billion for the year’s first nine months.
For the full year, Hapag-Lloyd now expects EBITDA to be between USD 4.6 billion and USD 5 billion, up from a previous forecast of USD 3.5 billion to USD 4.6 billion.
The company attributed some of its increased costs to rerouting vessels around the Cape of Good Hope due to geopolitical issues in the Red Sea.
“Transport times are much longer, which is why we needed significantly more capacity and bought capacity. Despite this, demand was relatively high and capacity was or still is tight,” a Hapag-Lloyd spokesman told Reuters.
They further noted that “when capacity is relatively tight, rates simply go up. This was particularly the case on the Far East to Europe route.”
Hapag-Lloyd cautioned that its updated forecast is still subject to uncertainty due to fluctuating freight rates and ongoing global tensions, as reported by Reuters.
This announcement follows a similar move by A.P. Møller-Maersk, which recently raised its financial guidance for the fourth time this year, citing robust demand and disruptions in Red Sea shipping lanes.