FRANKFURT, March 20, 2025 (Reuters) — Hapag-Lloyd, one of the world’s largest container shipping companies, has reported an 18.9% decline in net profit for 2024, citing reduced interest income and higher tax expenses. The company also announced a proposed dividend cut of 11.4% compared to the previous year.
The German-based shipping giant’s net profit for 2024 dropped to 2.4 billion euros ($2.61 billion), down from 2.9 billion euros in 2023. As a result, Hapag-Lloyd has proposed a dividend of 8.20 euros per share, down from 9.25 euros in 2023.
Looking ahead, Hapag-Lloyd’s CEO, Rolf Habben Jansen, warned that 2025 earnings would likely be lower than those of 2024. He attributed this forecast to ongoing uncertainties in the global economy, volatile freight rates, and significant geopolitical tensions. “The economic and geopolitical environment remains fragile. In this context, we anticipate earnings in 2025 to be lower than in 2024,” Jansen said.
The company has been grappling with challenges in the container shipping sector, which is often viewed as a barometer for global trade. The shipping industry has faced disruptions from the ongoing Red Sea crisis, in which attacks on vessels by Iran-backed Houthi militants have heightened risks. Additionally, tariffs imposed by the U.S. under former President Donald Trump have further strained the sector.
In response to these challenges, Hapag-Lloyd has partnered with rival Maersk as part of a strategic cooperation that began in February. Jansen emphasized that the company would closely monitor unit costs and focus on developing its terminal and onshore businesses throughout 2025.
While revenues for 2024 increased by 6.7% to 19.1 billion euros, driven by a 5% increase in transport volumes and stable freight rates, the company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) are projected to fall to between 2.4 billion and 3.9 billion euros for 2025, down from 4.6 billion euros in 2024. Earnings before interest and taxes (EBIT) for 2025 are expected to range between zero and 1.5 billion euros, a sharp decline from 2.6 billion euros in 2024.
Hapag-Lloyd operates a fleet of 299 container vessels and ranks as the fifth-largest container shipping line globally. Despite the challenges, the company remains focused on navigating a volatile market environment while maintaining its position in the global shipping industry.
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