Hapag-Lloyd’s net profit fell by 83% in 2023 – Kommersant
[ad_1]
Net profit of one of the largest sea freight operators, German Hapag-Lloyd fell in 2023 by 83%, amounting to €3 billion. Annual revenue fell by almost half, to €19.4 billion. The company also said that it expects profit to decline in 2024. The company’s shares fell 1.1%.
The sharp deterioration in Hapag-Lloyd’s performance is due, among other things, to the situation in the Red Sea due to attacks by the Yemeni Houthis. This significantly increases costs for carriers due to the need to divert vessels around. Additionally, after demand for container shipping surged during the pandemic, demand for containers overall has since fallen.
So container operators are faced with excess capacity and insufficient demand. “We expect market conditions to remain challenging this year,” said Hapag-Lloyd CEO Rolf Habben Jansen, also noting that the economic and political environment remains unstable and challenging “especially given the situation in the Red Sea.”
Why container imports began to decline – in material “Kommersant”.
[ad_2]
Source link
