HAPAG-LLOYD has reported a “significant” decrease in earnings in the 2023 financial year.

Transport volumes increased a marginal 0.8% to 11.9 million TEU in 2023 while the average freight rate decreased by 48%.

Hapag-Lloyd attributed the lower freight rates to the normalisation of global supply chains.

On the basis of preliminary and unaudited figures, group EBITDA stood at US$4.8 billion and group EBIT experienced a year-on-year decrease to US$2.7 billion.

Hapag-Lloyd said it had expected the lower EBIT and EBITDA.

“Revenues decreased to US$19.4 billion, primarily owing to a lower average freight rate of 1500 USD/TEU [compared with US$2863 per TEU in 2022].

“Transport volumes for 2023 as a whole rose by 0.5% to 11.9 million TEU [compared with 11.8 million TEU].

“However, the conflict in the Red Sea negatively impacted transport volumes at the end of the year, as the rerouting of ships around the Cape of Good Hope extended voyage times.”

The results posted this week are preliminary figures; Hapag-Lloyd is due to publish its 2023 annual report with audited financial figures and outlook for the current financial year on 14 March 2024.