Container carrier Hapag-Lloyd is the latest ocean transportation provider to report a robust financial boost from disruptions on key shipping routes.
The Hamburg, Germany-based liner operator on Friday raised full-year 2024 earnings estimates as vessel operators divert around Houthi rebel attacks on ships transiting the Red Sea, leading to longer voyages and higher rates for shippers.
Based on unaudited data, Hapag-Lloyd saw pretax earnings of $3.6 billion in the first nine months of 2024, down from $4.5 billion in the same period a year ago.
The company revised its earnings outlook for all of 2024 to $4.6 billion-$5 billion, up from $3.5 billion-$4.6 billion.
The improved forecast comes on stronger-than-expected demand and improved freight rates despite increased expenses from the diversion of vessels from Red Sea routes and around Africa’s Cape of Good Hope.
Hapag-Lloyd warned that very volatile freight rates and major geopolitical challenges make its forecast subject to a high degree of uncertainty.