Hapag-Lloyd reports sharp decline in Q1 financial results

Hapag-Lloyd ended the first quarter of 2024 with revenues falling to $4.6 billion mainly due to a decline in average freight rates of $1,359/TEU (1Q23: $1,999/TEU).

Hapag-Lloyd shipping line containers

Hapag-Lloyd - German container shipping line - ended the first quarter of 2024 with revenues of USD 4.6 billion and Group EBITDA of USD 942 million. Additionally, Hapag-Lloyd recorded EBIT of USD 396 million and profit of USD 325 million.

All numbers are down significantly compared to the same period last year.

According to a report by Hapag-Lloyd, in the Ocean Freight segment, shipping volumes in the first quarter of 2024 increased by 6.8%, to 3 million TEUs (Q1 2023: 2.8 million TEUs). Transportation costs were on par with the same period last year, at USD 3.3 billion (EUR 3 billion). Although costs increased significantly as a result of rerouting ships around the Cape of Good Hope, these costs were largely offset by aggressive cost management.

Revenue decreased to USD 4.6 billion (EUR 4.3 billion), mainly due to lower average freight rates, at USD 1,359/TEU (Q1 2023: USD 1,999/TEU). Compared to the same period last year, EBITDA decreased to USD 906 million (EUR 835 million) and EBIT to USD 378 million (EUR 348 million).

Rolf Habben Jansen, CEO of Hapag-Lloyd AG said: “Even though our results are significantly below the exceptionally strong figures from the previous year owing to the normalisation of supply chains, we are pleased to have got the new year off to a good start."

He went on to add, "The rates stabilised in the first quarter due to the rerouting of ships around the Cape of Good Hope and higher demand for capacity. The numerous new ships that have been and will be delivered across the industry in 2024 have been instrumental to keep the Supply Chains going without too much disruption."

Jansedn pointed out that "Going forward, we must keep a close eye on our costs, and we will continue the implementation of our Strategy 2030 – with main focus on our decarbonisation initiatives and our promise to be the undisputed number one for quality for our customers."

In light of the business results achieved in the first quarter of 2024, the company's Executive Board adjusted its forecast for the current fiscal year, announced on March 14.

Group EBITDA is currently forecast to be between $2.2-$3.3 billion and Group EBIT is between USD 0 - USD 1.1 billion, while it is still expected that the majority of results is expected to be created in the first half of this year.

Hapag-lloyd Group's financial results for Q1 2024