Hamburg, Aug. 10, (dpa/GNA) – The weak global economy and declining demand for transport by sea caused sales and profits of German container shipping company Hapag-Lloyd to slump again in the second quarter.
Consolidated earnings dropped to just over €1 billion ($1.1 billion) for the quarter, the Hamburg-based shipping firm reported on Thursday. That amounted to a drop of more than 75% from the second quarter in the company’s record-breaking 2022.
Major disruptions to global supply chains and surging demand for ocean transportation of goods sent shipping rates up sharply in 2022. Those bottlenecks and disruptions have eased in 2023, bringing prices – and profits – for shippers like Hapag-Lloyd back down.
According to Hapag-Lloyd, the average freight rate for a standard container fell in the second quarter to $1,533 from a price of $2,935 in 2022.
Turnover in the second quarter was €4.42 billion, also roughly half of what it was in the same quarter of the company’s record 2022.
Container shipping companies were big winners from the global supply chain disruptions during the coronavirus pandemic. Capacity to meet surging demand was scarce after years of red ink for ocean shipping firms amid price wars, overcapacity and major losses.
Hapag-Lloyd is considered the world’s fifth-largest shipping firm behind Cosco, CMA CGM, Maersk and MSC. The company boasts a fleet of 258 container ships and a transport capacity of almost 1.9 million 20-foot standard containers (TEU).
GNA