Hapag-Lloyd reported that its first-half performance exceeded expectations but fell short of the numbers achieved during the same period in 2023.

The ocean carrier concluded the first half of 2024 with a Group EBITDA of US$2 billion. The Group EBIT decreased to US$0.9 billion, and the Group profit decreased to US$0.8 billion, respectively.

"In view of the significantly changed market conditions following the end of the COVID-19 pandemic, these results are well below the previous year's level, but they are also above the initial expectations due to higher demand and rising spot rates in the second quarter of 2024," Hapag-Lloyd said.

In the Liner Shipping segment, it noted that the transport volumes increased by 5% compared to the prior-year period to 6.1 million TEU (H1 2023: 5.8 million TEU). 

Segment revenues fell by 14%, to US$9.3 billion, in particular, due to a lower average freight rate of US$1,391/TEU compared to US$1,761/TEU) compared to the same period last year. 

The EBITDA decreased to US$1.9 billion (EUR 1.8 billion), and the EBIT fell to US$0.8 billion. 

Hapag-Lloyd said the Terminal & Infrastructure segment achieved a significant increase in sales and earnings in the first half of 2024, in particular, due to the equity stakes acquired in the previous year.

The EBITDA rose to US$71 million and the EBIT to US$33 million.

"Even though we were unable to match the exceptionally good results of the prior year, we delivered a very good first half of 2024 thanks to strong demand and better spot rates," said Rolf Habben Jansen, CEO of Hapag-Lloyd AG. 

Nonetheless, he noted that the ocean carrier had added several new ships and containers to our fleet that helped Hapag-Lloyd meet the additional capacity requirements resulting from the security situation in the Red Sea and the rerouting of ships around the Cape of Good Hope.

"At the same time, we have made more progress in our efforts to decarbonise our fleet as well as in building up our terminal business under the Hanseatic Global Terminals brand. In the second half of the year, we will increasingly focus on continued growth and the high quality of our services," Jansen said.

Given that demand and freight rates have recently exceeded expectations, the Executive Board raised its forecast for the current financial year on July 9.

The Group EBITDA is expected to be in the range of US$3.5 to US$4.6 billion and the Group EBIT to be in the range of US$1.3 to US$2.4 billion.

Hapag-Lloyd noted that in view of the highly volatile development of freight rates and major geopolitical challenges, this forecast remains subject to a high degree of uncertainty.