Hapag-Lloyd has reported its financial results for the first nine months of 2024, revealing a year-on-year decline in earnings despite higher transport volumes and stronger demand in the third quarter.
The company’s Group Revenue fell slightly to EUR 14,061 million, a decrease of EUR 75 million (-0.5%) compared to the same period in 2023. However, profits and earnings saw significant declines, with Group Profit dropping by EUR 1,475 million (-46.6%) to EUR 1,687 million, while Group EBITDA decreased by EUR 868 million (-20.8%) to EUR 3,305 million.
In the Liner Shipping segment, transport volumes increased by 5% to 9.3 million TEU (9M 2023: 8.9 million TEU). However, this growth was offset by an 8.5% decline in the average freight rate, which dropped to USD 1,467/TEU compared to USD 1,604/TEU in 2023.
Segment revenue declined by EUR 270 million (-1.9%) to EUR 13,790 million. Earnings were significantly impacted, with EBITDA falling by EUR 937 million (-22.7%) to EUR 3,200 million and EBIT dropping by EUR 999 million (-36.5%) to EUR 1,733 million.
The Terminals & Infrastructure segment showed substantial growth, reflecting its development since being established in the second half of 2023. Revenues increased by EUR 216 million (+254%) to EUR 301 million. EBITDA rose by EUR 69 million (+186.5%) to EUR 105 million, while EBIT nearly doubled, increasing by EUR 25 million (+96.2%) to EUR 51 million.
The company attributed the weaker performance to lower freight rates during the first half of the year and higher costs, including those incurred from rerouting ships around the Cape of Good Hope due to geopolitical tensions in the Red Sea.
Despite these challenges, Hapag-Lloyd has raised its financial forecast for 2024. On 24 October, thGroup EBITDA is now expected to be in the range of EUR 4.2 billion to EUR 4.6 billion, with EBIT forecasted between EUR 2.2 billion and EUR 2.6 billion. This adjustment reflects higher-than-expected demand and improved freight rates during the third quarter, even as increased transport expenses continue to weigh on the company’s margins.
Commenting on the results, Rolf Habben Jansen, CEO of Hapag-Lloyd AG, said:
“The first nine months of 2024 were 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. At the same time, we have commissioned an extensive newbuild program for 24 ships, with which we will further modernise and decarbonise our fleet and thereby secure our long-term competitiveness.”