Hapag-Lloyd Swings to Loss as Strait of Hormuz Chaos and Weather Delays Hit Shipping

Container shipping giant Hapag-Lloyd reported a sharp deterioration in first-quarter earnings on Tuesday, blaming severe weather disruptions and the conflict in the Middle East for rising costs and weaker operational performance as the shipping industry grapples with another volatile year. 

The German carrier posted Group EBITDA of $494 million (€422 million) for the first quarter of 2026, down sharply from €1.05 billion a year earlier. Group EBIT swung to a loss of €134 million from a €463 million profit in the same quarter last year, while net profit fell to a loss of €219 million. 

Hapag-Lloyd said lower freight rates, severe weather disruptions across Europe and North America, and the effective closure of the Strait of Hormuz late in the quarter weighed heavily on results. 

“The first quarter of 2026 was unsatisfactory for us, with weather-related supply chain disruptions and pressure on freight rates leading to significantly lower results,” CEO Rolf Habben Jansen said in a statement. “At the same time, our Gemini network has proven its resilience even under difficult conditions.” 

The company’s liner shipping segment generated revenues of €4.1 billion, down nearly 18% year-over-year, as average freight rates fell 9.5% to $1,330 per TEU. Transport volumes slipped 0.7% to 3.2 million TEU. 

Hapag-Lloyd said the conflict in the Middle East triggered reroutings, delays, and longer transit times that increased transportation costs across its network. The company described the Strait of Hormuz as being under a “de facto closure” at the end of February. 

The carrier also pointed to severe weather events in Europe and North America that disrupted terminal operations and broader supply chains, compounding congestion pressures already affecting global shipping networks. 

Despite the weak quarter, Hapag-Lloyd maintained its full-year guidance, forecasting Group EBITDA between $1.1 billion and $3.1 billion and EBIT between a loss of $1.5 billion and a profit of $500 million. The company cautioned, however, that the outlook remains subject to “considerable uncertainty” because of freight rate volatility and the evolving Middle East conflict. 

The company said higher fuel prices tied to the regional conflict are increasing transportation costs globally, though it expects part of that impact to be offset by higher freight rates. Brent crude prices nearly doubled during the quarter, ending March at $118.35 per barrel, while low-sulfur bunker fuel prices surged more than 80% from year-end 2025 levels. 

Hapag-Lloyd also continued advancing its major strategic initiatives during the quarter, including its planned $4.2 billion acquisition of ZIM Integrated Shipping Services, which would strengthen its position as the world’s fifth-largest liner shipping company pending regulatory approvals. 

The company said its Gemini Cooperation network with Maersk has helped maintain schedule reliability despite the operational disruptions.

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