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HAPAG-LLOYD achieved a record US$18.5 billion ebit in 2022, compared with $11.1 billion the year before - but saw freight rates fall "significantly" in the fourth quarter, alongside a "significant increase in costs".
Nevertheless, the ocean carrier bucked the trend of declining volumes in Q4, as liftings equalled the previous year's 2.9 million TEU, with a full-year total of 11.8 million TEU, versus 11.9 million TEU in 2021.
Moreover, the ebit result was right in the middle of the $17.5 billion to $19.5 billion it advised analysts and investors in early November.
This suggests Hapag-Lloyd's results were better insulated from the collapse of spot rates in Q4 than some of its peers, due to a higher percentage of its carryings being sourced from the more robust contract business, according to London's Loadstar.
The carrier said that the "extraordinarily strong result" for 2022 "can primarily be attributed to higher freight rates".
Revenue for Q4 was $8 billion, down from $8.4 billion in Q4 21, although for the 12-month period, turnover soared to $36.4 billion, against $26.4 billion in 2021. Hapag-Lloyd's average rate last year was $2,863 per TEU, up 43 per cent on 2021's $2003.
However, the carrier's average rate slumped 15 per cent in Q4 on Q3, to $2,625 per TEU from $3,106 per TEU, as spot market rates plunged and contract rates came under pressure.
And the carrier clearly has concerns about the impact on its bottom line from high charter rates and inflationary price rises from service providers. It said: "Disruptions in global supply chains and inflation have led to a significant increase in costs."
Vespucci Maritime CEO Lars Jensen said he thought Hapag-Lloyd had done well to maintain its volumes and freight rates against a backdrop of weakening demand, showing "significant resilience in Q4 by holding onto volumes in a declining market and slowing the drop in realized freight rates considerably, compared with the overall market".
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