German Shipping Giant Hapag-Lloyd Posts Higher Profits
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HAMBURG, Germany — The German shipping company Hapag-Lloyd has raised its profit forecast for the current financial year because of rising freight rates.
Based on preliminary figures, earnings before interest and taxes (EBIT) rose to around 1.8 billion euros ($1.9 billion) in the first nine months of this year alone, the company announced in Hamburg on Oct. 25.
The range of profit expectations for the full year has been increased to between 2.2 billion and 2.6 billion euros. Hapag-Lloyd had previously expected earnings before interest and taxes of between 1.2 billion and 2.2 billion euros for 2024.
Hapag-Lloyd ranks No. 13 on the Transport Topics Top 50 list of the world’s largest global freight companies.
The shipper is benefiting from higher-than-expected demand and improved freight rates, despite higher expenses due to the rerouting of ships around the Cape of Good Hope, which became necessary due to the attacks by Yemen’s Houthi militia, an ally of Iran.
The company pointed out that the forecast was subject to a high degree of uncertainty due to the volatile development of freight rates and major geopolitical challenges. Hapag-Lloyd will present the final business figures for the first nine months in mid-November.
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