Hapag-Lloyd AG reports a revenue decrease of 12% in their half-year financial report mainly attributed to a significantly lower average liner shipping freight rate. 

The German shipping company reported a return of EUR 8.8 billion during H1 2024, a 1.2 billion decrease from the same period last year. 

Although the liner shipping segment recorded a 5% year-on-year increase in transport volumes, the 21% decline in freight rate and overall revenue, and higher operating expenses, led to a decrease in Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) by EUR 1.7 billion.

Due to the declining operating performance, earnings per share dropped to EUR 4.12 from EUR 16.46 in the prior year period.

In June 2024, the company's fleet consisted of 287 container vessels with a transport capacity of 2.2 million twenty-foot equivalent units (TEU). Hapag-Lloyd AG is the majority owner of five seaport terminals in the United States and Latin America, with holdings in European, North Africa, and Indian terminals. 

Spot freight rates out of Asia peaked in July, highest level since August 2022. 

The TEU fleet capacity in June 2024 amounted to 2,184 TTEU, an increase of 17.1% compared with last year in the same period.

According to the report, bunker consumption per slot increased due to tensions in the Red Sea that resulted in a detour around the Cape of Good Hope. 

Bunker consumption per TEU transported increased accordingly by 10.8% from 0.34 tons per TEU in H1 2023 to 0.38 tons in H1 2024.

Since July 1, 2024, the business unit has operated under the brand name Hanseatic Global Terminals. 

In the first half of the 2024 financial year, Hapag-Lloyd generated an annualized return on invested capital (ROIC) of 9.0%, 2 million EUR more than the previous year, and a EUR 8.6 billion revenue. 

Despite the decreases, the company's investor presentation states the organization delivered a "good operational performance" in H1 2024 and maintained a solid balance sheet, but the FY 2024 updated outlook states that risks remain high, and the business development is "subject to high degree of uncertainty." 

To deal with any upcoming hurdles the company states their continued focus on network reliability, implementing the new Strategy 2030, investing in fleet transformation, and preparing for seamless transition from THE Alliance to Gemini.