Hapag-Lloyd Trims 2025 Outlook as Mid-Year Profits Decline

Container shipping company Hapag-Lloyd has reported a 3.1% decline in first-half net income and lowered the top end of its full-year earnings forecast, largely due to uncertainty over geopolitical issues and US trade policy.

The world’s fifth-largest shipping firm projected full-year earnings before interest and taxes ranging between €200 million euros and €1.1 billion, compared with a previously expected range of breakeven to €1.5 billion.

Frequent changes in US tariff policies have caused volatility in trade patterns, and the tense security situation in the Red Sea has also been a burden, resulting in 24% lower EBIT at €619 million in the six months, the German company said.

Houthi militant attacks on Middle Eastern shipping have clouded the outlook for global shipping, with vessel owners being forced to sail a costly alternative route around Africa.

First-Half Highlights

Net income in the first half fell 3.1% to €709 million ($829 million).

However, revenues were up 10% at €9.7 billion and transport volumes grew 10.6% to 6.7 million 20-foot-equivalent (TEU) containers, spurring CEO Rolf Habben Jansen to talk of a “solid note overall.”

The company’s operational collaboration with bigger rival Maersk – known as Gemini – got off to a good start, but costs needed to be optimised, he said.

Gemini brings together a network of 340 ships on seven trade corridors.

In March, the container shipping firm reported an 18.9% lower net profit for 2024 and proposed a 11.4% cut in its dividend versus 2023, citing lower interest income and higher tax expenses.

Key earnings figures for 2025 were expected to range below those reported for 2024, said chief executive Rolf Habben Jansen at the time, attributing this to considerable uncertainty amid volatile freight rates and major geopolitical changes.