HAPAG-LLOYD’s profit in the first nine months of 2022 was up 120% on the same period last year, while its TEU volumes increased by less than 0.1%

Group profit reached US$14.7 billion over the first three quarters of 2022, up from US$6.6 billion posted at the same period in 2021.

The shipping company posted an EBITDA of $US16.6 billion for the first nine months of this year, up from US$8.2 billion a year earlier.

“Thanks to higher freight rates, we have achieved an exceptionally strong nine-month result,” Hapag-Lloyd CEO Rolf Habben Jansen said.

“However, we are also seeing that the market environment has deteriorated further in the third quarter.

“This is evident, for example, in falling spot rates and rising inflation-related unit costs.”

The company said supply-chain disruptions in the first nine months of the year resulted in longer turnaround times for ships and containers.

By the end of the third quarter, container transport was in weaker demand and the shortage of available transport capacity had eased slightly, it said,

The company said transport volumes reached 8987 TTEU over the first three quarters of 2022, up 0.8% on figures reported a year earlier (8980 TTEU).

Revenue increased to US$28.4 billion, up 58% on the US$17.945 billion in the third quarter of 2021.

Hapag-Lloyd attributed its revenue results to “a significant increase in the average freight rate” and a stronger US dollar.

The company said its business performance for the first nine months of 2022 was in line with the forecast adjusted on 28 July this year.

However, it said the forecast is subject to uncertainty caused by the conflict in Ukraine, unresolved supply-chain disruptions and the effects of Covid-19.

“In the coming months, the strained situation in the global supply chains should continue to normalise,” Mr Habben Jansen said.

“At the same time, our strong balance sheet will help us to stay on course even in difficult waters.”

Mr Habben Jansen said the company plans to invest more in quality, growth, and in decarbonising its fleet.

“One very significant focus is investment in infrastructure, which we are using to further expand our terminal portfolio,” he said.