Hapag-Lloyd Q1 2023: good resilience in weaker market environment
- Weak global demand continues in the first quarter of 2023
- Declining transport volumes and lower freight rates
- Focus on cost structure and strategy development
Hapag-Lloyd has concluded the first quarter of 2023 with an EBITDA of USD 2.4 billion (EUR 2.2 billion). EBIT decreased to USD 1.9 billion (EUR 1.7 billion) compared to the same quarter last year, and the Group profit was also below the prior-year level, at USD 2 billion (EUR 1.9 billion).
Transport volumes were 4.9 percent lower than in the first quarter of last year, at 2,842 TTEU (Q1 2022: 2,987 TTEU), owing to local destocking and weaker overall global demand. In addition, the lower average freight rate of 1,999 USD/TEU (Q1 2022: 2,774 USD/TEU) was particularly responsible for the decline in revenue, which decreased to USD 6 billion (EUR 5.6 billion).
Transport expenses remained at the prior-year level of USD 3.3 billion: The lower transport volumes were accompanied by inflation-related cost increases and a higher bunker consumption price, of USD 645/t (Q1 2022: USD 613/t).
“Despite declining results, we have made a robust start to the current financial year. The market environment has normalised, with corresponding declines in demand and freight rates. This will undoubtedly have an impact on our earnings over the course of the year, so we will be keeping a very close eye on our costs. In addition, we are pressing ahead on further developing our Group’s ‘Strategy 2030’, which will focus on quality and sustainability,” said Rolf Habben Jansen, CEO of Hapag-Lloyd AG.
For the full year 2023, Hapag-Lloyd confirms the forecast it published on 2 March. EBITDA is expected to be in the range of USD 4.3 to 6.5 billion (EUR 4 to 6 billion) and EBIT to be in the range of USD 2.1 to 4.3 billion (EUR 2 to 4 billion). However, the ongoing war in Ukraine, other geopolitical uncertainties and persistent inflationary pressures are creating risks that could negatively impact the forecast.
The financial report for the first quarter of 2023 is available online at:
With a fleet of 250 modern container ships and a total transport capacity of 1.8 million TEU, Hapag-Lloyd is one of the world’s leading liner shipping companies. The Company has around 14,100 employees and more than 400 offices in 135 countries. Hapag-Lloyd has a container capacity of 3 million TEU – including one of the largest and most modern fleets of reefer containers. A total of 119 liner services worldwide ensure fast and reliable connections between more than 600 ports on all the continents. Hapag-Lloyd is one of the leading operators in the Transatlantic, Middle East, Latin America and Intra-America trades.
This press release contains forward-looking statements that involve a number of risks and uncertainties. Such statements are based on a number of assumptions, estimates, projections or plans that are inherently subject to significant risks, uncertainties, and contingencies. Actual results can differ materially from those anticipated in the Company’s forward-looking statements.