Hapag reports EBIT loss of $300mn in Q42023

German carrier Hapag--Lloyd reported an EBIT of negative $300 million for the fourth quarter of 2023 compared to a profit of $2.2 billion in Q42022.

For the full year 2023, EBIT plunged 85 percent to $2.7 billion on 48 percent decline in average freight rate at $1,500/TEU, says an official release.

"On the basis of preliminary and unaudited figures, the Group EBITDA stood at $4.8 billion. This can largely be attributed to lower freight rates resulting from the normalisation of global supply chains."

Revenues declined 47 percent to $19.4 billion but transport volumes for 2023 as a whole rose marginally (0.5 percent to 11.9 million TEU. “The conflict in the Red Sea negatively impacted transport volumes at the end of the year as the rerouting of ships around the Cape of Good Hope extended voyage times.”

Hapag-Lloyd will publish its 2023 annual report with the audited financial figures and an outlook for the current financial year on March 14, 2024, the release added.

Gemini Cooperation
Hapag-Lloyd and Maersk have signed an agreement for a new long-term operational partnership called the Gemini Cooperation, which will start in February 2025.

Hapag-Lloyd has given notice to end its membership of THE Alliance at the end of January 2025.

The network will be centred around 12 key hub ports (10 owned and/or controlled terminals and two highly efficient operations in Singapore and Cartagena). The fleet of the new partnership will consist of some 290 modern and efficient vessels with an overall standing capacity of 3.4 million TEU, many ready to adopt cleaner fuels.