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Hapag-Lloyd Reports ‘Extraordinarily Strong’ Result in 2022, But Warns on Rates Coming Down

Mike Schuler
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January 31, 2023

Hapag-Lloyd is reporting “extraordinarily strong” financial results in 2022 amid an increase in average freight rates, but warns that rates had already “significantly come back down” by year-end.

2022 marked the German shipping line’s 175th anniversary. Hapag-Lloyd is currently the world’s fifth largest ocean carrier with 6.8% market share. Preliminary and unaudited figures released by the company on Tuesday showed an EBITDA of $20.5 billion in 2022, up from $12.8 billion in 2021.

Earnings before interest and taxes (EBIT) rose to $18.5 billion compared to 2021’s $11.1 billion, which the company attributes primarily to higher freight rates. Average freight rates increased by 43% year over year, to 2,863 USD/TEU, but had already started to come back down amid easing congestion and declining demand.

“At the same time, disruptions in global supply chains and inflation have led to a significant increase in costs,” Hapag-Lloyd said.

Revenues rose to $36.4 billion in 2022, up from $26.4 billion in 2021.

Transport volumes for last year were roughly flat compared with the prior-year level, at 11.8 million TEU in 2022 compared to 11.9 million TEU in 2021.

Hapag-Lloyd will publish its 2022 Annual Report with the audited financial figures and its outlook for this year on March 2, 2023.

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