Hapag 2024 earnings up marginally on higher volumes

German carrier Hapag-Lloyd reported an eight percent increase in earnings at $2.8 billion for 2024 on five percent increase in volumes to 12.5 million TEUs (despite the rerouting of ships via the Cape of Good Hope due to the security situation in the Red Sea and the associated longer voyage times) and stable average freight rate ($1,492/TEU).

Revenues rose to $20.7 billion, up six percent, particularly owing to stronger demand for container transport, says an official release.

"Hapag-Lloyd will publish its 2024 annual report with the audited financial figures and an outlook for the current financial year on March 20, 2025."

For the fourth quarter of 2024, revenue increased 32 percent to $5.4 billion on marginal increase in transport volume (3.1 million TEUs as against three million TEUs in Q42023). Average freight rate increased 31 percent to $ 1,564/TEU and earnings came in at $800 million as against a loss of $300 million in Q42023.

Waiting for Gemini
Hapag and Danish carrier Maersk will be launching their new service - Gemini Cooperation - from February 1, 2025.

"Gemini Cooperation will cover seven trades and offer 57 services including mainliner and dedicated shuttle services, complemented by feeder services. The fleet of our new partnership will consist of around 340 modern and efficient vessels, many ready to adopt cleaner fuels, with a total standing capacity of ~3.7 million."

A strong focus within Gemini Cooperation will be on schedule reliability - to increase on-time delivery on box level from ~50 percent today to more than 80 percent across the Hapag-Lloyd network.

"As the situation in the Red Sea remains highly dynamic, we plan to continue to sail around the Cape of Good Hope as the safety and well-being of our seafarers, our vessels and the cargo of our customers are key. We will return to the Red Sea when it is safe to do so."