Carrier’s record-breaking results begin downward curve

Carrier’s record-breaking results begin downward curve

August 12, 2023

Hapag-Lloyd has concluded the first half of 2023 with an Ebitda of $3.8 billion and an Ebit of $2.8bn. Group profit stood at $3.1bn. As expected, these results are significantly below the prior-year level.

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 transport 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 $10.8 billion (EUR 10.0 billion). Transport expenses were below the prior-year level, at $6.3 billion, primarily due to lower expenditure for demurrage and detention and a decreased bunker consumption price of $625 per tonne (H1 2022: USD 703 per tonne).

“Weaker demand and lower freight rates are having a very noticeable impact on our earnings,” said Rolf Habben Jansen, CEO of Hapag-Lloyd AG.

For the full year 2023, the company has confirmed its March 2 forecast.

Ebitda is expected to be in the range of $4.3 to 6.5bn and Ebit in the range of $2.1 to 4.3bn. However, the ongoing war in Ukraine, geopolitical uncertainties, persistent inflationary pressures and high inventory levels are creating risks that could negatively impact the forecast.

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