Hapag-Lloyd reports lower box volumes due to declining sales and profits in the first quarter

Hapag-Lloyd ended the first quarter of 2023 with a 4.9% lower container volume than in the first quarter of the previous year of 2,842,000 TEU.

According to the German company, this is due to local destocking and overall weaker global demand.

In addition, the lower average freight rate of US$1,999/TEU was particularly responsible for the decline in revenue, which fell to US$6 billion in the first three months of the year.

Meanwhile, transportation costs were flat at $3.3 billion last year. “This will no doubt affect our earnings as the year progresses, so we will be keeping a very close eye on our costs. In addition, we are driving forward the further development of our Group Strategy 2030, which focuses on quality and sustainability,” said Rolf Habben Jansen, CEO of Hapag-Lloyd AG.

In addition, Hapag-Lloyd’s earnings before interest, taxes, depreciation and amortization (EBITDA) fell to US$2.4 billion compared to the same period last year, while earnings before interest and taxes (EBIT) declined to US$1.9 billion and the company’s profit more than halved to $2 billion.

For the full year 2023, Hapag-Lloyd confirmed the forecast from March 2, according to which EBITDA in a range of USD 4.3 to 6.5 billion and EBIT in a range of USD 2.1 to 4.3 billion dollars are expected.

“However, the ongoing war in Ukraine, other geopolitical uncertainties and ongoing inflationary pressure create risks that could have a negative impact on the forecast,” the Hamburg shipowner stated.

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