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Hapag-Lloyd illustrated the economic strain shipping lines felt last year in its preliminary business figures for 2023, released this morning.
Despite the German carrier seeing a rise in transport volumes of 0.5%, to 11.9m teu, it reported total revenue decreased by $17bn over the year, to $19.4bn, down 46.7% from 2022’s $36.4bn.
However, it said the “significant decrease in earnings” had been expected, and attributed the loss to lower freight rates – its average freight rate fell 48% year on year. Rates averaged $1,500 per teu, compared with $2,863 in 2022.
Hapag-Lloyd noted that the “normalisation of global supply chains”, in the wake of the Covid-19 pandemic, was largely to blame for the poor market conditions.
Based on preliminary and unaudited figures, Hapag-Lloyd’s group earnings before tax and interest (EBIT) were down $15.7bn, year on year, to $2.7 bn.
The company recently announced the formation of a long-term collaboration with Danish carrier Maersk, the Gemini Cooperation, which will launch in February 2025.
Head of global ocean freight product at Visy Global Logistics, Peter Sundara Swamickannu, told The Loadstar Podcast, out today, the targeted 90% schedule reliability promised by Maersk and Hapag-Loyd would be a “game-changer”.
Listen to this clip about why the Gemini Cooperation between Maersk and Hapag Lloyd could radically transform container shipping
Podcast host Mike King explained that the partners planned to bring some 290 ships into the new set up, with a combined capacity of 3.4m teu. Hapag-Lloyd is currently part of THE alliance, but will withdraw in January next year.
Hapag-Lloyd will release an outlook for the current financial year on 14 March, along with its 2023 annual report.
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