Lost your password?
Don't have an account? Sign Up

Hapag-Lloyd leads rate hikes on Asia-Europe trade

Share This News Story:

HAMBURG : Hapag-Lloyd, of Germany just raised its profit forecast again as this year has been the best yet for them still and for all the container shipping lines too.

The world’s fifth-largest airline operator said on Thursday it would post earnings before interest, taxes, depreciation and amortization of $10.9 billion for the first half of this year.

This translates into EBITDA of $5.6 billion for the second quarter of 2022, the best quarterly result in the company’s history and up 145% year over year. Hapag-Lloyd reported EBITDA of $5.3 billion in the first quarter.

For the first half of the year, volume was 6 million twenty-foot equivalent units, unchanged from last year. The average freight rate increased by 80%, considering the rate of $2,902 per TEU for the first half of the year.

Hapag-Lloyd’s average freight rate was $2,774 per TEU in the first quarter, meaning second-quarter rates, including contract and spot rates, rose even higher.

For the full year 2021, Hapag-Lloyd reported EBTIDA of $12.8 billion. In March, it forecast EBITDA of $12 billion to $14 billion this year. In May, he increased the forecast to $14.5-16.5 billion.

On Thursday, it significantly increased to 19.5-21.5 billion dollars, which is 52-68% higher than last year’s result. Hapag-Lloyd’s forecast calls for very strong second-half results of $8.6-10.6 billion.

According to Deutsche Bank analyst Andy Chu, “while our forecasts are well ahead of the market, today’s new guidance — especially at the top end of the range [with] management is very conservative — significantly ahead of expectations. The company is making extraordinary profits.”

Share This News Story: