Hapag-Lloyd with good start to 2024 in first quarter of year

• Demand and rates stabilised in the first quarter

• Earnings forecast for 2024 refined

• Clear focus on costs and implementing Strategy 2030

Hapag-Lloyd concluded the first quarter of 2024 with a Group EBITDA of USD 942 million
(EUR 868 million). Compared to the same quarter of the previous year, the Group EBIT decreased to USD 396 million (EUR 365 million) and the Group profit to USD 325 million (EUR 299 million).

 Liner Shipping segment

In the Liner Shipping segment, the transport volumes for the first quarter of 2024 increased by 6.8 percent, to 3 million TEU (Q1 2023: 2.8 million TEU). Transport expenses were on a par with the same quarter of the previous year, at USD 3.3 billion (EUR 3 billion).

Revenues decreased

Although costs rose significantly as a result of the rerouting of ships around the Cape of Good Hope, these were largely offset by active cost management. Revenues decreased to USD 4.6 billion (EUR 4.3 billion), primarily owing to a lower average freight rate of 1,359 USD/TEU (Q1 2023: 1,999 USD/TEU). Compared to the same quarter of the previous year, the EBITDA decreased to USD 906 million (EUR 835 million) and the EBIT to USD 378 million (EUR 348 million).

Terminal & Infrastructure segment

In the Terminal & Infrastructure segment, an EBITDA of USD 35 million (EUR 32 million) and an EBIT of USD 18 million (EUR 16 million) were achieved in the first quarter of 2024. The new segment was only created in the second half of 2023 and is currently in the process of being established. For this reason, the figures for the first quarter of 2024 are only comparable with the prior-year figures to a limited extent.

The rates in the first quarter

“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. The rates stabilised in the first quarter due to the rerouting of ships around the Cape of Good Hope and higher demand for capacity.

Keep the Supply Chains 

The numerous new ships that have and will be delivered across the industry in 2024 have been instrumental to keep the Supply Chains going without too much disruption. 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,” said Rolf Habben Jansen, CEO of Hapag-Lloyd AG.

Business performance

In view of the positive business performance in the first quarter of 2024, the Executive Board has refined its forecast for the current financial year, which was published on 14 March 2024. The Group EBITDA is now expected to be in the range of USD 2.2 to 3.3 billion (EUR 2 to 3 billion) and the Group EBIT to be in the range of USD 0 to 1.1 billion (EUR 0 to 1 billion).

It is still assumed that a large part of the projected result will be generated in the first half of the year. In view of the highly volatile development of freight rates and major geopolitical challenges, this forecast remains subject to a high degree of uncertainty.

The financial report for the first quarter of 2024 is available here.