Shipping Giant Sees ‘Difficult Waters’ Ahead

Germany
Uncategorized
Supply Chain

(14 November 2022 – Germany) The world’s fifth-largest container carrier warned of “difficult waters” ahead that it aims to weather with the help of a solid financial position built up over almost two years of surging ocean freight rates.

Transport volumes in the first nine months remained on a par with the prior-year level, at 8,987 TTEU compared to 8,980 TTEU in 2021.

Revenues increased to US$28.4 billion, mainly be attributed to a significant increase in the average freight rate (2,938 USD/TEU in 9M 2022 versus 1,818 USD/TEU in 9M 2021) and a stronger U.S. dollar.

Profit as measured by Ebitda totalled €15.6 billion, more than double the year-earlier result.

“Thanks to higher freight rates, we have achieved an exceptionally strong nine-month result. However, we are also seeing that the market environment has deteriorated further in the third quarter. This is evident, for example, in falling spot rates and rising inflation-related unit costs,” said Hapag-Lloyd AG CEO, Rolf Habben Jansen.

“In the coming months, the strained situation in the global supply chains should continue to normalise,” he added.

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