SIMIC

Hapag-Lloyd concluded the first half of 2022 with an EBITDA of US$10.9 billion, while EBIT rose to $9.9 billion. Group profit nearly tripled to $9.5 billion compared to last year, reports Ventura, California's gCaptain.

"We have benefitted from significantly improved freight rates and look back on an extraordinarily strong business performance on the whole in the first half year. At the same time, a steep rise in all cost categories is putting increased pressure on our unit costs," said Rolf Habben Jansen, CEO of Hapag-Lloyd AG.

Revenues increased in the first half year of 2022 to $18.6 billion on the back of higher average freight rates, which hit $2,855/TEU compared to an average of $1,612/ TEU in H1 2021, and a stronger US dollar.

Global supply chains remain under significant pressure due to persistent capacity bottlenecks in ports and congested hinterland infrastructures, leading to longer turnaround times for ships and containers, Hapag-Lloyd said.

Overall, transport volumes in the first half of 2022 were on a par with last year, at approximately 6 million TEU.

Hapag-Lloyd's result would have been even better if not for significantly higher expenses for container handling and charter ships, as well as by a 67 per cent increase in the average bunker price, which rose to $703 per tonne compared to $421 per tonne in H1 2021.

Looking ahead, Hapag-Lloyd has raised its full-year forecast by as much as 30 per cent from previous estimates, as announced July 28. EBITDA in 2022 is now expected to be in the range of $19.5 billion to $21.5 billion, up from $14.5 billion to $16.5 billion previously, and EBIT in the range of $17.5 billion to $19.5 billion, up from $12.5 billion to $14.5 billion.

For comparison, Hapag-Lloyd posted "extraordinarily strong" operating results in 2021, with EBITDA of $12.8 billion, up from $9.6 billion in 2020, and EBIT of $11.1 billion.

The July 28 guidance noted "significant uncertainty" in the market, namely from the war in Ukraine, continuing disruptions in global supply chains, and the effects of the Covid-19 pandemic. Recent guidance from Maersk and HMM included similar caution, while ONE is holding off on providing guidance altogether.

"We are currently seeing the first signs in some trade lanes that spot rates are easing in the market. Nevertheless, we are expecting a strong second half of the year," Mr Jansen added. "The currently still strained situation in the global supply chains should improve after this year's peak season. Our customers can continue to rely on us to do everything in our power to transport their goods to their destination as smoothly as possible. At the same time, we will continue to focus on our quality and sustainability goals as well as on further implementing our Strategy 2023."

Further out, a wave of newbuilds set for delivery in 2023 is likely to outstrip shipping demand. Global containership capacity growth is expected to be 7 per cent in 2023, compared to demand growth of 3 per cent.

"Over the upcoming 24 months, we clearly see that supply growth will outpace demand growth," said Mr Jansen in his earnings call with analysts.

Overall for the industry, analyst John McCown of Blue Alpha Capital believes container shipping profits will come in at $256 billion, $36 billion more than his prior estimate in April and significantly higher than 2021's record profits of $148 billion.