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Hapag-Lloyd posts strong earnings as rates and volumes rise

Gemini network to be built around the Cape of Good Hope with about 340 vessels and 3.7m teu starting bookings in two weeks

Hapag-Lloyd delivered strong results as expected in the third quarter on the back of strong container volume growth on the transpacific and healthy spot freight rates out of Asia

HAPAG-LLOYD’S third-quarter earnings came in strongly as volumes and rates rose as the company prepares for the start of its new Gemini network with Maersk.

Net profit in the third quarter nearly tripled year on year to $1bn, from $292m, while revenue rose by 29% to $5.8bn.

Earnings before interest and tax nearly quadrupled to $1.06bn for the quarter. The freight rate in dollars per teu rose by 22% to $1,612.

Global container volumes have risen by 6.3% year-to-date, marking the highest growth rate since 2021. Growth was particularly strong on the transpacific amid high consumption and frontloading effects ahead of the averted US east coast port strike.

Just 0.7% of the containership fleet was idle at September 30, down from 1.2% a year ago, as Red Sea diversions stretch capacity. The orderbook-to-fleet ratio was 20.7%, compared with 61% in 2007.

For the first nine months of 2024, the figures reflected downturn since last year, when earnings were still propped up by the aftermath of the supply chain crisis. Revenue was flat at $15.3bn, while earnings before interest, tax, depreciation and amortisation fell 20% to $3.6bn. Profits was down 46% to $1.8bn for the period.

Transport volumes increased by 4.5% to 9.3m teu compared with the first nine months of 2023. But the average freight rate fell by 8.5% to $1,467 per teu.

Hapag-Lloyd earlier signed contracts to build 24 containerships with total capacity of 312,000 teu for delivery between 2027 and 2029, with total investment of about $4bn.

The fleet stood at 292 containerships as of September 30, with transport capacity of 2.3m teu.

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