Hapag-Lloyd continues to expect rough seas in container traffic
Following a slump in profits this year, the Hamburg-based shipping company Hapag-Lloyd expects rough seas in global container transportation in the coming quarters. Subdued demand, more ship capacity and price pressure are expected, according to a presentation by CEO Rolf Habben Jansen on Thursday. The industry's capacity will exceed demand by 2024, which will make "active cost management" unavoidable.
Hapag-Lloyd put the average price for the first nine months of the year at 1604 dollars per 20-foot standard container (TEU) - compared to 2938 dollars a year earlier. Freight rates fell more sharply than had been expected due to the supply/demand ratio.
The fall in prices for sea transportation compared to the corona-related boom caused Hapag-Lloyd's revenue and profit to plummet in the first nine months of this year. The Group result fell to around 3.16 billion euros. In the record year 2022, it amounted to EUR 13.77 billion after nine months.
Given the challenging market conditions and the decrease in freight rates, Hapag-Lloyd needs to closely monitor its quarterly figures to manage costs effectively. The shipping company's expectations of rough seas in container traffic indicate that the quarterly shipping revenues might be affected.
Source: www.dpa.com
