Hapag-Lloyd reveals 75 percent fall in net profit for H1 of 2024, maintains positive outlook
Date
8/15/2024 4:41:36 AM
(MENAFN) German shipping giant Hapag-Lloyd announced a substantial 75 percent decrease in net profit for the first half of 2024, with earnings falling to 732 million euros (USD804.47 million) compared to 2.9 billion euros in the same period last year. Despite this significant decline, the company is optimistic about its full-year performance and has raised its July headline figures, citing a strong market environment. CEO Rolf Habben Jansen acknowledged that while the results did not match the exceptionally high levels achieved the previous year, the first half of 2024 was still strong due to robust demand and favorable spot market prices.
Looking ahead, Hapag-Lloyd plans to focus on continued growth and enhancing service quality throughout the remainder of the year. The company has also expanded its fleet with new vessels and containers in response to increased capacity needs driven by the geopolitical situation in the Red Sea. Since November, the Houthi group in Yemen has intensified attacks on ships in the Red Sea, leading to disruptions in global shipping routes and forcing many companies to reroute through the longer Cape of Good Hope passage around Africa. This has impacted operational costs and logistics.
Hapag-Lloyd also highlighted that transport costs rose by 5 percent to 6.2 billion euros in the first half of 2024, largely due to higher fuel prices and the need for longer voyages around Africa caused by the Red Sea security situation. The company emphasized that, given the current volatility in freight rates and ongoing geopolitical uncertainties, its outlook remains highly uncertain. Despite these challenges, Hapag-Lloyd remains committed to navigating the turbulent market and focusing on future growth and service excellence.
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