Hapag-Lloyd Transport Volumes Up By 0.5% To 11.9m TEU In 2023

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  • Third-best result in the company’s history achieved.
  • Proposed dividend of EUR 9.25 per share.
  • Outlook: market environment will remain challenging.

Hapag-Lloyd published its annual report for 2023. As expected, a significant decrease in earnings was recorded. According to the report, the Group EBITDA stood at USD 4.8 billion (EUR 4.5 billion). The Group EBIT experienced a year-on-year decrease to USD 2.7 billion (EUR 2.5 billion), and the Group profit to USD 3.2 billion (EUR 3 billion), according to the company’s release.

Lower expenditures for demurrage and storage fees

In the Liner Shipping segment, transport volumes for 2023 as a whole rose by 0.5% to 11.9 million TEU (2022: 11.8 million TEU). Transport expenses lowered by 11% to USD 12.9 billion (EUR 11.9 billion), primarily due to lower expenditures for demurrage and storage fees for containers and a lower bunker consumption price. Revenues dropped to USD 19.2 billion (EUR 17.8 billion), primarily owing to a lower average freight rate of 1,500 USD/TEU (2022: 2,863 USD/TEU). The EBITDA for 2023 decreased to USD 4.8 billion (EUR 4.4 billion) compared to 2022. The EBIT fell to USD 2.7 billion (EUR 2.5 billion).

In the Terminal & Infrastructure segment, an EBITDA of USD 50 million (EUR 46 million) and an EBIT of USD 21 million (EUR 19 million) were achieved in the 2023 financial year. Revenues stood at USD 202 million (EUR 187 million). Since the new segment is still in the process of being formed, it does not reflect the results of a full financial year.

In light of what has been another very good earnings trend, the Executive Board and Supervisory Board of Hapag-Lloyd AG have decided to propose to the Annual General Meeting a dividend of EUR 9.25 per share for the 2023 financial year – which would correspond to a total of EUR 1.6 billion and the third-highest amount ever paid out by Hapag-Lloyd.

Volatile development of freight rates

For the current 2024 financial year, the Executive Board of Hapag-Lloyd AG expects the Group EBITDA to be in the range of USD 1.1 to 3.3 billion (EUR 1 to 3 billion) and the Group EBIT to be in the range of USD minus 1.1 to 1.1 billion (EUR minus 1 to 1 billion). However, this forecast remains subject to considerable uncertainty given the volatile development of freight rates and geopolitical challenges.

With a fleet of 266 modern container ships and a total transport capacity of 2.0 million TEU, Hapag-Lloyd is one of the world’s leading liner shipping companies. In the Liner Shipping segment, the company has around 13,500 employees and 403 offices in 140 countries. Hapag-Lloyd has a container capacity of 2.9 million TEU – including one of the largest and most modern fleets of reefer containers. A total of 113 liner services worldwide ensure fast and reliable connections between more than 600 ports on all the continents.

In the Terminal & Infrastructure segment, Hapag-Lloyd has equity stakes in 20 terminals in Europe, Latin America, the United States, India, and North Africa. Around 2,900 employees are assigned to the Terminal & Infrastructure segment and provide complementary logistics services at selected locations in addition to the terminal activities.

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Source: Hapag-Lloyd