- Hapag-Lloyd Expects Lower Q4 Profitability Amid Freight Rate Decline.
- Red Sea Disruptions to Persist Until 2025, Says Hapag-Lloyd CEO.
- Rerouting Around Africa Cuts Hapag-Lloyd’s Nine-Month Net Profit by 47%.
According to Hapag-Lloyd’s Chief Executive Rolf Habben Jansen, the German shipping company will incur reduced profitability in the fourth quarter, while still remaining at a good level. The announcement follows the freight rate peak achieved in the third quarter, the CEO announced at a press conference on Monday, reports Reuters.
Cost of Re-Routing Ships Around Africa
Disruptions in the Red Sea, blamed for continuing conflicts with Houthi militants, will last through much of 2025. To get container ships around Africa to destinations, Hapag-Lloyd has been paying very high costs, including sending a 47% nosedive in nine-month net profit.
Uncertainty Beyond 2024
Germany-headquartered Hapag-Lloyd, the world’s fifth-largest container shipping group, expects continued uncertainty regarding freight rates and the global political climate.
Network Development and Important Dates
The Gemini network from the company’s JV with Danish shipping major Maersk is going exactly as planned. They are developing a new network along the Cape of Good Hope network. Bookings in the network will be operational as of December 3, 2024, and the operations will start from February 1, 2025.
Possible Trade Effects of Tariffs from the U.S.
When asked about the potential tariffs under incoming U.S. President Donald Trump, Habben Jansen said that trade patterns may change, but the company is well-prepared.
Capacity to Adapt
Hapag-Lloyd has enough capacity to reroute ships if needed, thus showing flexibility in response to changes in trade dynamics.
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Source: Reuters
