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Hapag-Lloyd reported a significant decline in earnings for the 2023 financial year
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EBITDA was down to US$4.8 billion in 2023 or by 76.6% from 2022
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EBIT sank by 85.4% to $ billion
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The drop was primarily driven by lower freight rates due to the normalization of global supply chains further impacted by the conflict in the Red Sea
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Average freight rate decreased by 48% to $1,500 per twenty equivalent unit
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Transport volume was up to 11.9 million TEU
Hapag-Lloyd reported a substantial decrease in earnings for the 2023 financial year.
The Group’s EBITDA was down year-on-year to US$4.8 billion in 2023 or by 76.6% from $20.5 billion while EBIT sank 85.4% to $2.7 billion from $18.5 billion, based on preliminary and unaudited figures, the company said in a statement.
The decline was attributed to lower freight rates, a consequence of the normalization of global supply chains.
Revenues decreased to $19.4 billion from $36.4 billion as a result of lower average freight rate of $1,500 per twenty equivalent unit compared to $2,863 per TEU in 2022, a fall of 48%.
Transport volumes for 2023 experienced a slight increase of 0.5%, reaching 11.9 million TEU compared to 11.8 million TEU in 2022.
The conflict in the Red Sea had a notable impact on transport volumes towards the end of the year. The rerouting of ships around the Cape of Good Hope resulted in extended voyage times, contributing to a decrease in transport volumes. Additionally, the global challenges related to the COVID-19 pandemic and geopolitical tensions have likely exerted further pressure on the company’s performance.
Hapag-Lloyd is set to release its 2023 Annual Report, including audited financial figures and an outlook for the current financial year, on March 14. This will provide stakeholders and industry professionals with comprehensive insights into the company’s performance and strategic direction moving forward.
