Hapag-Lloyd's turnover and profit slump
Lower prices for sea transportation have caused sales and profits at Hamburg-based container shipping company Hapag-Lloyd to slump again in the third quarter. In the period from July to September, the Group result fell to 264 million euros, as Hapag-Lloyd AG announced in Hamburg on Thursday.
Compared to the same period in the record year 2022, this is a decline of around 95 percent. Revenue fell by more than half to around 4.10 billion euros.
As in previous quarters, this is due to a normalization of global supply chains on the world's oceans, which had been disrupted for years. According to Hapag-Lloyd, the average freight rate fell from 3106 to 1312 dollars per 20-foot standard container (TEU) in the third quarter.
Container shipping companies were among the winners of the coronavirus pandemic in the face of huge disruptions in global supply chains. Prices for sea transportation rose due to a shortage of capacity - supply is now significantly higher, which is putting downward pressure on prices.
With a fleet of 264 container ships and a transport capacity of almost 2 million TEU, Hapag-Lloyd is the fifth-largest shipping company in the world, behind Cosco, CMA CGM, Maersk and the primus MSC.
The quarterly figures for Hapag-Lloyd's profit saw a significant decline, with the Group result dropping to 264 million euros in the third quarter. This is a stark contrast to the same period in 2022, revealing a decrease of approximately 95 percent. In terms of shipping, the average freight rate decreased from 3106 to 1312 dollars per TEU during this period, contributing to the change in quarterly shipping figures.
Source: www.dpa.com
