Hapag-Lloyd continued to benefit from "higher" freight rates in the first nine months of the year amid persisting disruptions in the global supply chains
It said EBITDA from January to September reached US$16.6 billion (EUR 15.6 billion) and an EBIT of US$ 15.1 billion (EUR 14.2 billion) as the Group's profit climbed to US$14.7 billion (EUR 13.8 billion).
Higher freight rates, global supply chain disruptions
"Thanks to higher freight rates, we have achieved an exceptionally strong nine-month result. However, we are also seeing that the market environment has deteriorated further in the third quarter. This is evident, for example, in falling spot rates and rising inflation-related unit costs," said Rolf Habben Jansen, CEO of Hapag-Lloyd AG.
Hapag-Lloyd said in a statement that the first nine months were significantly marked by disruptions in the global supply chains, which resulted in longer turnaround times for ships and containers.
At the end of the third quarter, there was also weaker demand for container transports and consequently a slight easing in the shortage of available transport capacities.
In a statement, Hapag-Lloyd said the transport volumes were on par with the prior-year level, at 8,987 TTEU (9M 2021: 8,980 TTEU).
"Revenues also increased to US$28.4 billion (EUR 26.7 billion). This can mainly be attributed to a significant increase in the average freight rate, to 2,938 USD/ TEU (9M 2021: 1,818 USD/ TEU), and a stronger US dollar," the shipping line said.
For the first nine months, Hapag-Lloyd said transport expenses climbed to US$10.8 billion (EUR 10.1 billion) — due in part to a significantly higher bunker consumption price and higher expenses for container handling.
Hapag-Lloyd said overall, the strong business performance in the first nine months was in line with the forecast adjusted on July 28, 2022.
Thus, for the 2022 financial year, an EBITDA in the range of US$ 19.5 to US$21.5 billion (EUR 18.2 to 20.1 billion) and an EBIT in the range of USD 17.5 to 19.5 billion (EUR 16.3 to 18.2 billion) are still expected, the shipping line added.
However, Hapag-Lloyd noted that this forecast remains subject to considerable uncertainty given Russia's war of aggression on Ukraine, supply chain disruptions that have not yet been fully resolved, and the effects of the COVID-19 pandemic.
Strained supply chains to continue to normalise
"In the coming months, the strained situation in the global supply chains should continue to normalise. At the same time, our strong balance sheet will help us to stay on course even in difficult waters. We will stick to our strategic agenda while investing more in quality and growth as well as in the further decarbonisation of our fleet. One very significant focus is an investment in infrastructure, which we are using to further expand our terminal portfolio," Habben Jansen added.
In driving its strategy for 2023, Hapag-Lloyd noted that it has continuously expanded its involvement in the terminal sector, most recently through agreements on acquiring stakes in the terminal business of Chile-based SM SAAM and the Italy-based Spinelli Group.
In addition, Hapag-Lloyd has stakes in JadeWeserPort in Wilhelmshaven, the Container Terminal Altenwerder in Hamburg, Terminal TC3 in Tangier, and Terminal 2 in Damietta, which is currently under construction.
