Hapag-Lloyd noted continuing risks in the market moving into the second half of 2023 as it reported a slowdown in its overall performance for the first six months of the year.
The German international shipping firm said weaker demand and lower freight rates are having a "very noticeable impact" on the company's earnings.
For the first half, Hapag-Lloyd reported an EBITDA of US$3.8 billion and an EBIT of US$2.8 billion. The Group's profit stood at US$3.1 billion.
"As expected, these results are significantly below the prior-year level," the ocean carrier said, adding that "subdued demand continues in the first half of 2023."
Source: Hapag-Lloyd
For the period, Hapag-Lloyd said transport volumes experienced a year-on-year decline of 3.4% to 5,807 TTEU (H1 2022: 6,012 TTEU), primarily owing to lower demand for container transports on the Far East and European trade routes to North America.
In addition, a lower average freight rate of 1,761 USD/TEU (H1 2022: 2,855 USD/TEU) was particularly responsible for the decline in revenue, which decreased to US$10.8 billion.
"Weaker demand and lower freight rates are having a very noticeable impact on our earnings. In a challenging market environment, we can look back on a successful first half year overall, in which we were able to expand our terminal portfolio while also significantly boosting our customers' satisfaction thanks to our focus on quality," said Rolf Habben Jansen, CEO of Hapag-Lloyd AG.
"In the second half of the year, we will continue to focus on formulating our 'Strategy 2030'. This strategy will guide us forward on our strategic path to success in 2024," he added.
Outlook for the rest of 2023
For the full year 2023, Hapag-Lloyd confirmed the forecast it published on March 2.
The shipping line said EBITDA is expected to be in the range of US$4.3 to US$6.5 billion and EBIT to be in the range of US$2.1 to US$4.3 billion.
"However, the ongoing war in Ukraine, geopolitical uncertainties, persistent inflationary pressures and high inventory levels are creating risks that could negatively impact the forecast," Hapag-Lloyd said.
