Hapag-Lloyd optimistic for first half but sees ‘prevailing high risk’

Preliminary figures show German container line has done better this year than last. But it warns that significant risks remain

FURTHER signs of the health of the container shipping sector have emerged as Hapag-Lloyd said it expected earnings in the first half to be higher than in the first six months of last year.

The Hamburg-based line said it expected earnings before interest, tax, depreciation and amortisation to be in the region on €1.2bn ($1.4bn), up 17% on the first six months of last year. Ebit would be up nearly a third to €500m.

The company has maintained its ebitda forecast for the full year in the range of €1.7bn-€2.2bn, but warned that this could still change.

“Against the background of the still prevailing high risks with regard to the spread of the coronavirus pandemic and the related economic consequences the forecast is subject to significant uncertainties,” Hapag-Lloyd said.

The company’s success in the face of a global slowdown in volumes that had seen liftings fall by over 7% in the first half of the year is a testament to container lines’ active capacity management.

Reducing available space by blanking sailings has seen freight rates remain stable or rise, depending on the trade lane, and has helped carriers substantially reduce costs as ships are idled or returned to charterers.

Hapag-Lloyd will publish full figures for the first half of the year on August 14.