Company News, Freight News, Logistics News, Shipping News

Hapag-Lloyd reporting strong Q3 results

Hapag-Lloyd has posted an improved end of year EBITDA forecast for 2024. Full results are expected to be published by November 14

Hapag Lloyd has reported strong and robust profits before tax for the calendar year so far, and raised its 2024 full-year earnings estimates despite the ongoing geopolitical uncertainty surrounding the key Red Sea region.

Vessel operators around the world are continuing to divert their ships from the region as attacks on Houthi rebels continue to put ships at risk.

The diversions have resulted in longer voyages and soaring freight rates for shippers.

Based on unaudited data, Hapag-Lloyd has made pre-tax earnings of US$3.6 billion for the first nine months of 2024, which is a reduction of US$900 million from this time last year.

Stay in the loop by subscribing to the ATN newsletter

Despite the reduced year-on-year profits to date, it has significantly increased its EBITDA earnings outlook for the entirety of 2024 from US$3.5-US$4.6 billion to US$4.6 billion-US$5 billion.

Despite the necessary diversions around the Cape of Good Hope and the resulting costs it incurs, higher-than-expected demand for shipping has formed the bedrock of Hapag-Lloyd’s commercially successful 2024 to date.

The increased demand and extended routes have meant capacity on ships has remained scarce despite congestion at key ports across the planet.

Hapag-Lloyd says its new EBITDA forecast is still subject to a high degree of uncertainty due to the volatility of freight rates and the world’s current geopolitical challenges.

The upgrade in earnings outlook has followed a similar estimate by Maersk. The two companies will enter the Gemini Cooperation in February 2025.

Read more ATN:
GrainCorp strike to cause heavy vehicle delays
Decarbonisation MoU signed between world-leading ports
“Legacy” project hits key juncture

Previous ArticleNext Article
  1. Australian Truck Radio Listen Live
Send this to a friend