Hapag-Lloyd sees profits dive as shipping slump continues
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Shipping group Hapag-Lloyd has reported a €2.2bn (£1.91bn) tumble in profit, as the end of the post-pandemic shipping boom continues to hit the freight sector.
Revenues dived 29 per cent over the quarter to €5.6bn, while pre-tax earnings fell 53.1 per cent to €2.2bn (£1.91bn) in the first quarter.
Hapag-Lloyd said a combination of low freight rates and weaker global demand was particularly responsible for the weaker performance.
Transport volumes were also 4.9 per cent lower than the first quarter last year.
Rolf Habben Jansen, CEO of Hapag-Lloyd, said: “Despite declining results, we have made a robust start to the current financial year. The market environment has normalised, with corresponding declines in demand and freight rates.”
“This will undoubtedly have an impact on our earnings over the course of the year, so we will be keeping a very close eye on our costs. In addition, we are pressing ahead on further developing our Group’s ‘Strategy 2030’, which will focus on quality and sustainability.”
Hapag-Lloyd maintains profit forecasts
The freight sector has seen a huge slump in recent months, as the pandemic-era boom which saw record profits fades and the shipping market re-adjusts to previous levels.
Maersk, the Danish-based shipping titan saw profits plunge last week, warning of a “radically changed” world for freight groups.
Hamburg-based Hapag-Lloyd did maintain its profit forecasts for the year, which are expected to be in the range of $4.3bn to $6.5bn, although it said its forecast is subject to “considerable uncertainty” owing to the war in Ukraine.