Hapag-Lloyd Reports Significant Decline in Profits for 2023

Hapag-Lloyd, the world’s fifth-largest liner shipping company, reported a significant decline in profits for 2023. The company cited lower freight rates as the global supply chains returned to normal as the main reason for this decline. Preliminary figures show that the company’s consolidated EBITDA was $4.8 billion, down from $20.5 billion in 2022, and the consolidated EBIT was $2.7 billion, down from $18.5 billion in 2022. Revenue also took a hit, falling to $19.4 billion from $36.4 billion in 2022, largely due to a decrease in the average freight rate to $1,500/TEU from $2,863/TEU in 2022. Transport volumes saw a slight increase to 11.9 million TEUs in 2023 compared to 11.8 million TEUs in 2022, but the ongoing conflict in the Red Sea negatively impacted transport volumes at the end of the year.

Despite the decline in profits and revenue, Hapag-Lloyd continues to operate 264 modern container ships with a total transport capacity of 2.0 million TEU and has interests in 20 terminals in various locations around the world. The company plans to publish its 2023 audited annual report, including financial figures and an outlook for the current financial year, on March 14, 2024.

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