Hapag-Lloyd reported cost headwinds of around US$600M from the Middle East conflict in Q2 2026, while expressing confidence that its acquisition of ZIM will close towards the end of the year
The German liner operator said in its latest earnings report that the blockage of the Strait of Hormuz had resulted in additional costs related to bunker, insurance, storage, service rerouting and inland transportation.
Hapag-Lloyd chief executive Rolf Habben Jansen told investors on the earnings call that the company had managed to move the vessels it wanted out of the Strait of Hormuz, while offering alternative routings through land bridges.
“This is working well, even if, of course, it is more expensive and the capacity is less than we used to have,” he added.
Strong exports from Asia and improved US demand partly offset the impact of the Middle East disruption. Following an unsatisfactory start to 2026, with earnings impacted by operational disruptions, volumes and spot rates picked up significantly in the second quarter, Hapag-Lloyd said in its earnings presentation.
Against this backdrop, the company reported EBITDA of US$829M in Q2 2026, compared with US$820M in the same period last year, while EBIT decreased to US$176M from US$189M. Group profit stood at around US$83M, down from US$306M in Q2 2025.
“The second quarter was better than the first, driven by significantly higher spot rates and robust demand,” Mr Habben Jansen said.
“In the second half of 2026, we will remain focused on growing both our liner shipping and terminal businesses while maintaining strict cost discipline to further improve our financial performance,” he added.
On the back of the Q2 performance and improved market conditions, Hapag-Lloyd raised its full-year 2026 earnings outlook on 13 July.
Group EBITDA is now expected to be in the range of US$2.7Bn to US$3.7Bn, while Group EBIT is expected to range between US$0.1Bn and US$1.1Bn.
Hapag-Lloyd cautioned that the outlook remains subject to considerable uncertainty due to the highly volatile development of freight rates and the ongoing conflict in the Middle East.
ZIM transaction
The German liner operator also remains confident about completing its transaction with ZIM.
“We continued working on the ZIM transaction, where the shareholders have approved the transaction, and now we are working through the regulatory approvals. We still expect to wrap that up towards the end of the year,” Mr Habben Jansen said.
“We continue to work diligently with all the regulators in the various countries,” he added.
The comments come as Israeli media have reported that domestic government agencies are opposed to the deal, questioning whether ZIM will retain its independence following the transaction. This follows reports in recent months that critics of the Hapag-Lloyd deal have voiced concerns over the future of ZIM’s business presence in Israel.
According to ZIM, however, Hapag-Lloyd has committed to maintaining a significant business presence in the country, including the long-term employment of ZIM staff.
The deal would strengthen Hapag-Lloyd’s position as the world’s fifth-largest container shipping company, with a modern fleet of more than 400 vessels, total capacity exceeding 3M TEU and annual transport volumes of more than 18M TEU.
As part of the transaction, Hapag-Lloyd signed a binding memorandum of understanding with Israeli private equity firm FIMI Opportunity Funds covering the transfer of ZIM’s Special State Share, subject to government approval. FIMI intends to establish a new Israel-based liner operator, “New ZIM”, with a fleet of 16 vessels.
