German container shipping leader Hapag-Lloyd swings to loss

Hapag-Lloyd, Germany’s largest container shipping company, reported a first-quarter loss as multiple external pressures weighed on its performance, including the blockade of the Strait of Hormuz, severe weather conditions, and declining freight rates.

In a statement released on Wednesday, May 13, chief executive Rolf Habben Jansen attributed the weak results to a volatile market environment and said the company would continue to enforce strict cost discipline.

Earnings before interest and taxes (EBIT) for the first quarter came in at €134 million ($157 million), down significantly from €463 million in the same period last year. The company reported an overall net loss of €219 million, representing a decline of €665 million year-on-year.

Revenue dropped by nearly 17% to €4.2 billion, reflecting lower freight rates amid stagnating cargo volumes.

Operational disruptions linked to geopolitical tensions also affected performance. By the end of April, four of Hapag-Lloyd’s container ships remained stranded in the Gulf due to Iran’s blockade of the Strait of Hormuz.

Jansen previously said the conflict involving Iran was adding approximately $50 million in weekly costs, primarily driven by rising fuel prices. He also noted that increased insurance costs are expected to continue putting pressure on the company.

By Tamilla Hasanova