The German shipping company Hapag Lloyd reported a 50% drop in its net profit for the first nine months of the year, standing at 846 million euros, and reduced the maximum forecast for its annual earnings, citing market volatility and rising costs. “We will respond with agility to changes in global trade and maintain strict cost discipline,” stated CEO Rolf Habben Jansen in a statement. The manager also added that the company is already seeing the first cost advantages from the new Gemini cooperation with its competitor Maersk, despite the investments made previously.
Security concerns in the Red Sea and frequent changes in US trade policy have contributed to unstable demand and fluctuating freight rates, which has affected profitability across the entire shipping sector, considering it a key indicator of global economic activity. Hapag-Lloyd’s EBIT in the first nine months fell 55% year-on-year, to 809 million euros.
14 more fleet units for Hapag-Lloyd
The German shipping company has placed firm orders with two China-based yards for the construction of at least fourteen dual-fuel methanol container vessels. The delivery date for the box ships has not yet been disclosed.
