Here’s coverage of today’s quarterly results and analyst call of ocean carrier Hapag-Lloyd: Q3 earnings came in well below expectations – a “big miss.” Volume was up but rates fell more than analysts expected, driven lower by overcapacity as newbuildings delivered. Net income plunged 73% sequentially vs. the second quarter of this year. Hapag-Lloyd expects the market to remain under pressure for the next 6-8 quarters, so into 2025. Also, interesting comment on Panama Canal situation from Hapag-Lloyd CEO: “I think the drought in the Panama Canal is a real problem. The number of ships going through there today cannot all go through there [in 2024] — and we have to find solutions for that. Rerouting some ships via the Suez Canal is certainly one of the options.” See story for more coverage: https://lnkd.in/eKXVCxUK
Greg Miller’s Post
More Relevant Posts
-
📣 The Loadstar: On the back of rocketing spot freight rates, Hapag-Lloyd today upped its 2024 financial guidance after releasing unaudited first-half results. Despite the increase, some analysts have questioned why the German carrier was not more bullish in its outlook. 💭 Alphaliner commented “It will come as no surprise that carriers are revising their financial expectations upwards, though observers might have expected an even greater uplift from Q1 to Q2. The higher forecast was mainly due to earnings momentum for the second half of the year” ✅ Read the full article below:
On the back of rocketing spot freight rates, Hapag-Lloyd AG-Lloyd today upped its 2024 financial guidance after releasing unaudited first-half results. “It will come as no surprise that carriers are revising their financial expectations upwards, though observers might have expected an even greater uplift from Q1 to Q2,” Alphaliner wrote today. But against the backdrop of very volatile freight rates and major geopolitical challenges, the forecast is subject to a high degree of uncertainty... Gavin van Marle reports. #hapaglloyd #containershipping #oceanshipping #seafreight #oceanfreight #supplychain #logistics #freight #cargo #profit #boxshipping https://lnkd.in/gtYNnQcc
Hapag-Lloyd eyes bigger profits as freight rates continue to rise - The Loadstar
https://theloadstar.com
-
On the back of rocketing spot freight rates, Hapag-Lloyd AG-Lloyd today upped its 2024 financial guidance after releasing unaudited first-half results. “It will come as no surprise that carriers are revising their financial expectations upwards, though observers might have expected an even greater uplift from Q1 to Q2,” Alphaliner wrote today. But against the backdrop of very volatile freight rates and major geopolitical challenges, the forecast is subject to a high degree of uncertainty... Gavin van Marle reports. #hapaglloyd #containershipping #oceanshipping #seafreight #oceanfreight #supplychain #logistics #freight #cargo #profit #boxshipping https://lnkd.in/gtYNnQcc
Hapag-Lloyd eyes bigger profits as freight rates continue to rise - The Loadstar
https://theloadstar.com
-
Optimizing and creating value for global supply chains, 3pl logistics, warehouse & distribution operations
Hapag-Lloyd reported net income of $293 million for Q3 2023, down 94% year on year and down 73% sequentially versus net income of $1.1 billion in the second quarter of this year
Shipping line Hapag-Lloyd suffers ‘big miss’ as Q3 profits slump
freightwaves.com
-
🌊 Navigating Rough Seas Ahead! 🚢 🔍 Quick scoop: Hapag-Lloyd, a big name in shipping, is facing some choppy waters! Their Q3 earnings report showed profits taking a dive 📉 despite more goods being moved across the seas 📦. 👨✈️ Captain’s insight: The CEO, Rolf Habben Jansen, says it's not about the number of containers; it's the cash they bring in 💰. Too many ships and too low rates are making waves in the market 🌪️. 📈 Stats at a glance: Profits sank 94% from last year! That's a lot of treasure off the map 🗺️. And though rates are still up from the pre-COVID era, they've dropped 14% from just last quarter. 🎯 Strategy onboard: Hapag-Lloyd isn't about that loss-making life. They'd rather sail with fewer contracts than agree to deals that don't stack the coins 🪙. Even if that means some ships will take a break at the dock 🛳️. 👀 Lookout for icebergs: There's trouble brewing with the Panama Canal water levels 🚧 and talks of a dockworker strike in the US ⚠️. The crew's ready to reroute and ride the wave of change! #ShippingScoop #HapagLloyd #OceanEconomy #EarningsWave #SmoothSailingAhead #HapagLloyd #MaritimeIndustry #ShippingNews #GlobalTrade #SupplyChain #FreightRates #EconomicOutlook #Logistics #ShippingStrategy
Shipping line Hapag-Lloyd suffers ‘big miss’ as Q3 profits slump
freightwaves.com
-
I came across this interesting article about Hapag-Lloyd's Q3 results and its outlook for the future. The article explains how the company is facing a challenging market situation, with overcapacity, low freight rates, high operational costs, and potential trade disruptions. #highlogisticsbrazil #HapagLloyd #hapag #ContainerShipping #FreightRates #Overcapacity #MarketPressure #TradeDisruptions
Hapag-Lloyd, one of the world's leading container shipping lines, reported a big miss in its third-quarter results, with net profit dropping by 94% year-on-year to $293 million. The company blamed the decline on higher operational costs, lower transport volumes, and unfavorable exchange rate effects. This result contrasts with the strong performance of Hapag-Lloyd in the first nine months of 2022, when the company achieved a net profit of $14.7 billion, more than double the amount of the same period in 2021. The company also increased its revenue by 58% to $28.4 billion, thanks to a surge in the average freight rate and a stronger US dollar. So, what happened in Q3 2023 that caused such a sharp drop in profitability? According to the company's CEO Rolf Habben Jansen, the main reason is the overcapacity in the container shipping market, which is putting downward pressure on freight rates. He said that the orderbook is still very substantial, with a lot of newbuildings scheduled to be delivered in the next quarters, while the demand growth is not expected to recover dramatically in the near future. He also said that the macro environment remains challenging, with two wars going on, high interest rates, high inflation, and low investor sentiment. He warned that the market will be under pressure until 2025, and that the company will have to focus on cost efficiency and operational excellence to maintain its competitiveness. To cope with the weak market conditions, Hapag-Lloyd and its partners in THE Alliance have canceled four major east-west services, removing entire services from the network instead of canceling them on a week-by-week basis. The company also tightened its guidance and now expects full-year operating profits of $2.4 billion to $3.4 billion, which implies a negative or low result for the fourth quarter. Hapag-Lloyd is also preparing for the upcoming contract negotiations for its Asia-Europe services, which renew at the beginning of the calendar year. The company's CEO said that Hapag-Lloyd would rather lose business than sign loss-making contracts, and that it would idle ships and reduce voyage costs if contract volumes are lost. In addition to these challenges, Hapag-Lloyd also faces potential trade disruptions in the near future, such as the drought in the Panama Canal and the threat of a port worker strike on the U.S. East and Gulf coasts. The company's CEO said that the drought in the Panama Canal is a real problem, as it could reduce the capacity of the canal by 30-40% at the beginning of next year, forcing some ships to reroute via the Suez Canal. He also said that the negotiations with the U.S. dockworkers are a source of risk, as they could lead to a possible strike that would affect the space availability and the market dynamics. Share your thoughts in the comments below. #highlogisticsbrazil source: https://lnkd.in/gc2yGyvF
Shipping line Hapag-Lloyd suffers ‘big miss’ as Q3 profits slump
freightwaves.com
-
Hapag-Lloyd, one of the world's leading container shipping lines, reported a big miss in its third-quarter results, with net profit dropping by 94% year-on-year to $293 million. The company blamed the decline on higher operational costs, lower transport volumes, and unfavorable exchange rate effects. This result contrasts with the strong performance of Hapag-Lloyd in the first nine months of 2022, when the company achieved a net profit of $14.7 billion, more than double the amount of the same period in 2021. The company also increased its revenue by 58% to $28.4 billion, thanks to a surge in the average freight rate and a stronger US dollar. So, what happened in Q3 2023 that caused such a sharp drop in profitability? According to the company's CEO Rolf Habben Jansen, the main reason is the overcapacity in the container shipping market, which is putting downward pressure on freight rates. He said that the orderbook is still very substantial, with a lot of newbuildings scheduled to be delivered in the next quarters, while the demand growth is not expected to recover dramatically in the near future. He also said that the macro environment remains challenging, with two wars going on, high interest rates, high inflation, and low investor sentiment. He warned that the market will be under pressure until 2025, and that the company will have to focus on cost efficiency and operational excellence to maintain its competitiveness. To cope with the weak market conditions, Hapag-Lloyd and its partners in THE Alliance have canceled four major east-west services, removing entire services from the network instead of canceling them on a week-by-week basis. The company also tightened its guidance and now expects full-year operating profits of $2.4 billion to $3.4 billion, which implies a negative or low result for the fourth quarter. Hapag-Lloyd is also preparing for the upcoming contract negotiations for its Asia-Europe services, which renew at the beginning of the calendar year. The company's CEO said that Hapag-Lloyd would rather lose business than sign loss-making contracts, and that it would idle ships and reduce voyage costs if contract volumes are lost. In addition to these challenges, Hapag-Lloyd also faces potential trade disruptions in the near future, such as the drought in the Panama Canal and the threat of a port worker strike on the U.S. East and Gulf coasts. The company's CEO said that the drought in the Panama Canal is a real problem, as it could reduce the capacity of the canal by 30-40% at the beginning of next year, forcing some ships to reroute via the Suez Canal. He also said that the negotiations with the U.S. dockworkers are a source of risk, as they could lead to a possible strike that would affect the space availability and the market dynamics. Share your thoughts in the comments below. #highlogisticsbrazil source: https://lnkd.in/gc2yGyvF
Shipping line Hapag-Lloyd suffers ‘big miss’ as Q3 profits slump
freightwaves.com
-
Hapag-Lloyd Raises 2024 Guidance Amid Red Sea Rate Support 🚢📊 Hapag-Lloyd has increased its 2024 financial guidance, citing strong rate support in the Red Sea market. This positive outlook reflects the company’s resilience and strategic positioning in key shipping routes. #Shipping #Finance #HapagLloyd #MarketTrends #RedSea 🔗 Hapag-Lloyd raises 2024 guidance on Red Sea rate support https://lnkd.in/ecVB97dd
Hapag-Lloyd raises 2024 guidance on Red Sea rate support
seatrade-maritime.com
-
Hapag-Lloyd Raises 2024 Guidance Amid Red Sea Rate Support 🚢📊 Hapag-Lloyd has increased its 2024 financial guidance, citing strong rate support in the Red Sea market. This positive outlook reflects the company’s resilience and strategic positioning in key shipping routes. #Shipping #Finance #HapagLloyd #MarketTrends #RedSea 🔗 Hapag-Lloyd raises 2024 guidance on Red Sea rate support https://lnkd.in/et8qtXCy
Hapag-Lloyd raises 2024 guidance on Red Sea rate support
seatrade-maritime.com
-
Hapag-Lloyd Raises 2024 Guidance Amid Red Sea Rate Support 🚢📊 Hapag-Lloyd has increased its 2024 financial guidance, citing strong rate support in the Red Sea market. This positive outlook reflects the company’s resilience and strategic positioning in key shipping routes. #Shipping #Finance #HapagLloyd #MarketTrends #RedSea 🔗 Hapag-Lloyd raises 2024 guidance on Red Sea rate support https://lnkd.in/et8qtXCy
Hapag-Lloyd raises 2024 guidance on Red Sea rate support
seatrade-maritime.com
-
De facto massive losses in Q4, 2023 Given that HL had already earned $ 2.99 B in The first 6 months, their new Full Year guidance indicates losses for Q4 up to $500 million ! Their CEO states that the problem is not volume (and I agree, if that matters any 😁). The problem is of course the massive own goal of too much and too large tonnage. A problem exclusively created by global MLO’s management (so this is not only Hapag’s problem to fix). The only way to own this mistake and make amends (otherwise 100’s of thousands will loose their jobs in the logistics industry) is : • to immediately lay up large % of old and new vessels • to implement strict central pricing control • to accept much lower load factors against higher revenue • blank sail every 2nd voy (Asia transpacific excluded of course) e/b (who cares about what the European & US shippers say ? They don’t need $100/40’ gate in Europe / CY Asian main ports) 4 relatively easy measures to implement. Otherwise the real social legacy could easily be : the big MLO’s destroyed millions of families. And we have not even talked about how your average shareholders feel about this ! 😂 after all the MLO’s management works for the shareholders… right ?
Hapag-Lloyd hit by downward spiral in freight rates
ft.com
Logistics network design & development. Commercial strategy, structure and execution. Acquisition, expansion, integration, facility and service creation. Joint Venture Chairman / Director, M&A. Asset Management.
9moThe “drought in the Panama Canal is a real problem”. That was quite an understatement…….if the momenta of capacity constraint continues, this is going to have a brutal effect on the economies of North and South America. It could create some new services / options, at higher cost, longer transit ….helping to absorb some capacity. More volume moving via the Suez / Horn of Africa could have the same effect. The next Supply Chain training course on the horizon, and closer than that horizon. Buyers would be wise to be open minded to the potential cost bounce of further PC capacity deterioration and begin hedging supply chain solutions for at least a % of volume, with a nod to service over barrel bottom costs.