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Hapag-Lloyd recorded a 257% y-o-y surge in its net income to USD 1 bn in 3Q 2024, according to an earnings release (pdf). The German shipping company’s revenues increased 29.2% y-o-y to USD 5.7 bn during the same period, which the firm has attributed to increased demand and high freight rates.
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On a 9M basis, Hapag-Lloyd’s bottom line decreased 46.5% y-o-y to USD 1.8 mn in 9M 2024, while revenues dipped 0.1% y-o-y to USD 15.2 bn during the same period.
The culprit: Hapag-Lloyd attributed its 9M earnings to lower freight rates in 1H 2024 and increased transport expenses due to the rerouting of ships around the Cape of Good Hope. Increased demand and higher freight rates in 3Q 2024 led to a significant rise in earnings compared to the year prior.
Shipping volumes expected to increase: Hapag-Lloyd’s CEO stated on Thursday that he anticipates sustained strength in container shipping volumes, driven by global demand for goods transportation, which serves as an indicator of trade and a key gauge of the global economy’s health, Reuters reported on Thursday. The company reported that the volume of TEU containers transported by its 292 vessels increased to 9.3 mn metric tons in the nine months from January to September, a 5% rise compared to 8.9 mn metric tons during the same period last year.
