Economic downturn causes HHLA's profit to plummet
The persistently weak economy has resulted in a drop in revenue and a slump in profits for the Hamburg port logistics company HHLA in the first nine months of 2023. Due to a decline in container throughput and shorter dwell times for boxes at the terminals, revenue shrank by 7.1 percent to just under 1.1 billion euros. After taxes, profits amounted to only 11.9 million euros, almost 83 percent less than in the previous year. This was announced by Hamburger Hafen und Logistik AG on Tuesday.
"The gloomy economic situation continues to affect HHLA's business activities as an international logistics company," said Angela Titzrath, CEO of HHLA, according to the press release. "The resulting challenging conditions are therefore also reflected in the company's result after the third quarter." Despite declining transport volumes in hinterland traffic by rail and road, HHLA recorded an increase in revenue in this area. "This was due to the increase in transport revenue over the course of the previous year, which was adjusted to reflect the higher costs of purchasing services, particularly energy."
HHLA recorded a small ray of hope in the summer quarter: "The sharp decline in volumes recorded in the first half of 2023 due to the economic situation eased thanks to a stronger third quarter in the Container segment, but remained challenging for container transport," it said. HHLA cites declines in China traffic, the Port of Hamburg's most important mainstay, as the main reason for the weaker container traffic. "Positive impetus from North American cargo volumes and handling volumes in the Middle East were unable to compensate for this."
The decline in international trade due to the economic downturn has negatively impacted HHLA's shipping and transportation sectors, leading to a decrease in container throughput. The quarterly figures reveal that HHLA's revenue from shipping and trade has decreased significantly, contributing to the notable drop in overall profitability.
Source: www.dpa.com
