German shipping company Hapag-Lloyd reported a 50% decline in its nine-month net profit, totaling 846 million euros ($986.6 million), and has revised its full-year earnings forecast downward due to market volatility and rising costs. The firm adjusted its earnings before interest and taxes (EBIT) outlook to between 0.5 billion and 1.0 billion euros, lowering the upper limit from 1.1 billion euros announced in August.
CEO Rolf Habben Jansen emphasized the company’s commitment to adapt to global trade changes while maintaining strict cost control. He noted early cost benefits from the new partnership with Maersk, despite prior investments. The shipping sector is facing challenges from security issues in the Red Sea and fluctuating U.S. trade policies, which have led to unstable demand and variable freight rates.
Hapag-Lloyd’s EBIT fell 55% year-on-year to 809 million euros, even as transport volumes rose by 9% to 10.2 million twenty-foot equivalent units (TEU). However, average freight rates decreased by 4.8% to $1,397 per TEU. Meanwhile, Maersk reported unexpectedly strong third-quarter results but cautioned about declining freight rates in the upcoming quarter.
