Photo: Hapag-Lloyd

Hapag-Lloyd reports $12.8 billion operating profit amid strong demand

German container shipping company Hapag-Lloyd reported an “extraordinary” strong operating result in 2021, driven by high freight rates.

Illustration. Image Courtesy: Hapag-Lloyd

On the basis of preliminary figures, Hapag-Lloyd’s earnings before interest, taxes, depreciation and amortisation (EBITDA) for the 2021 financial year increased to more than $12.8 billion, compared to $3.1 billion seen in 2020.

Earnings before interest and taxes (EBIT) rose to roughly $11.1 billion, compared to $1.5 billion posted a year earlier.

“The main drivers of these positive business developments have been significantly improved freight rates resulting from very strong demand for goods exported from Asia,” the company said.

“At the same time, the major disruptions in global supply chains have led to a significant increase in transport expenses.”

Revenues increased to roughly $26.4 billion from $14.6 billion recorded in 2020. This can mainly be attributed to a higher average freight rate of 2,003 USD/TEU (2020: 1,115 USD/TEU), according to Hapag-Lloyd.

Transport volumes were roughly on a par with the prior-year level, at 11.9 million TEU due to the strained supply chains.

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Hapag-Lloyd has a fleet of 257 containerships and a total transport capacity of 1.8 million TEU.