Hapag-Lloyd operating profit rises sevenfold

Preliminary figures for the fourth quarter from the container line brought EBIT of $11.1bn for 2021 as whole, up from $1.5bn in 2020. EBITDA quadrupled over the same period from $3.1bn in 2020 to $12.8bn in 2021.

The profit increase came despite steady transported volumes of 11.9m teu in 2021 compared to 11.8m in 2020. However, freight rates rose almost 80% between 2020 and 2021, from $1,115 per teu to $2,003 per teu. This helped revenues to rise to $26.4bn in 2021 compared to $14.6bn in 2020.

“The main drivers of these positive business developments have been significantly improved freight rates resulting from very strong demand for goods exported from Asia. At the same time, the major disruptions in global supply chains have led to a significant increase in transport expenses,” Hapag Lloyd said in a press release.

Profits at the major container lines have benefited from supply chain disruption as queues and delays at ports have decreased available vessel capacity and the usual flow of equipment like empty containers has been disturbed, leading to higher prices for in-demand slots on ships.

The company is due to release its 2021 Annual Report including its audited figures and 2022 outlook on 10 March 2022.