Hapag-Lloyd posts strong financial results in 2022 H1

"We have benefitted from significantly improved freight rates and look back on extraordinarily strong business performance on the whole in the first half year. At the same time, a steep rise in all cost categories is putting increased pressure on our unit costs," said Rolf Habben Jansen, CEO of Hapag-Lloyd.

Additionally, the company's revenue rose in the first half of 2022 to US$18.6 billion (€17 billion), which can be mainly attributed to a much higher average freight rate of US$2,855/TEU.

The German container shipping firm noted that global supply chains continue to be under significant pressure resulting in longer turnaround times for vessels and containers.

Overall, Hapag-Lloyd's transport volumes in the first half of 2022 were on par with the previous year's level at around 6 million TEU. The result was impacted by significantly higher container handling and vessel charter costs, as well as a 67% increase in the average fuel consumption price to US$703 per tonne, according to the company's statement.

Based on current business performance, the second half is also likely to exceed previous expectations.

The executive board of Hapag-Lloyd raised its profit forecast for the current financial year. The major box carrier now expects EBITDA of US$19.5 to 21.5 billion and EBIT of US$17.5 to 19.5 billion.

"However, this forecast remains subject to significant uncertainty given the war in Ukraine, ongoing supply chain disruptions and the impact of the Covid-19 pandemic," pointed out the company, which added, "We are currently seeing the first signs in some trade lanes that spot rates are easing in the market. Nevertheless, we are expecting a strong second half of the year."

Source: Container News