Hapag-Lloyd’s Results After Nine Months Below Last Year

Hapag-Lloyd concluded the first nine months of 2023 with a group EBITDA of 4.5 billion US dollars (4.2 billion euros) and a group EBIT of 3.0 billion US dollars (2.8 billion euros). The group result was 3.4 billion US dollars (3.2 billion euros). Given the significantly changed market conditions, these results are clearly below the previous year’s level.

(Hamburg) With the further expansion of the terminal business, the business activities of the Hapag-Lloyd Group have also been divided for the first time into the segments of liner shipping as well as terminal & infrastructure.

In the liner shipping segment, EBITDA decreased in the first nine months of 2023 to 4.5 billion US dollars (4.1 billion euros). EBIT fell to 3.0 billion US dollars (2.7 billion euros). Revenues dropped to 15.2 billion US dollars (14.1 billion euros), primarily due to a lower average freight rate of 1,604 USD/TEU (9M 2022: 2,938 USD/TEU). This further declined in Q3 2023 to 1,312 USD/TEU (Q3 2022: 3,106 USD/TEU) and remained at a significantly lower level in several trade areas compared to the previous year. However, transport volumes improved in the third quarter by nearly 5 percent to 3,110 TTEU (Q3 2022: 2,975 TTEU). Thus, the volumes in the nine-month period were maintained at nearly the previous year’s level (9M 2022: 8,987 TTEU) with 8,916 TTEU.

Transport expenses decreased by 11 percent compared to the previous year to 9.6 billion US dollars (8.9 billion euros), primarily due to the ongoing normalization in global supply chains and a lower average bunker consumption price of 611 USD/t (9M 2022: 755 USD/t).

Terminal & Infrastructure Segment is New and Offers No Comparison Yet

In the terminal & infrastructure segment, an EBITDA of 38 million US dollars (35 million euros) and an EBIT of 29 million US dollars (27 million euros) were achieved in the first nine months of 2023. The new segment is still being developed and therefore does not reflect the results of a full nine-month period. It consolidates Hapag-Lloyd’s shares in 20 terminals in Europe, Latin America, the United States, India, and North Africa, as well as other infrastructure investments.

“Due to an increase in transport volumes in the third quarter, our volumes for the nine-month period remained nearly unchanged compared to 2022. Additionally, we have further implemented our strategic agenda, expanded our terminal portfolio, and increased customer satisfaction through quality improvements. However, freight rates are below last year’s level and have, as expected, also declined again in the third quarter – which is reflected in noticeably lower revenues. Therefore, we are consistently working to further reduce our costs – for example, through savings on the procurement side and adjustments in our service network. However, in the current challenging market environment, we may face some difficult quarters if spot rates do not recover,” said Rolf Habben Jansen, CEO of Hapag-Lloyd AG.

Slightly Improved Forecast for the Full Year

For the full year 2023, Hapag-Lloyd is specifying its forecast published on March 2. EBITDA is now expected to be in a range of 4.5 to 5.5 billion US dollars (4.1 to 5 billion euros) and EBIT in a range of 2.4 to 3.4 billion US dollars (2.2 to 3.1 billion euros). Given numerous geopolitical conflicts, ongoing inflationary pressures, and the still high inventory levels of many customers, the forecast is fraught with uncertainties.

The financial report for the nine-month period 2023 is available here

Photo: © Hapag-Lloyd