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Freight rates and disruptions weigh on earnings
Hapag-Lloyd reported a sharp decline in first quarter earnings for 2026 after severe weather disruptions and the blockage of the Strait of Hormuz hit cargo flows and supply chains across key trade routes.
The carrier posted Group EBITDA of USD 494 million, down significantly from the same quarter last year. Group EBIT fell to a loss of USD 157 million, while Group profit dropped to a loss of USD 256 million. Lower freight rates and operational disruptions combined to pressure performance during the quarter.
In liner shipping, revenues declined to USD 4.8 billion as the average freight rate fell to USD 1,330 per TEU from USD 1,471 per TEU a year earlier. Transport volumes held relatively steady at 3.2 million TEU despite ongoing disruption across Europe and North America.
Anyone following container supply chains over the past year has seen how quickly one disruption can ripple across the network. Heavy storms can slow terminal productivity for days, while a chokepoint closure such as the Strait of Hormuz can alter vessel deployment and cargo flows almost overnight.
Gemini network tested under pressure
Chief Executive Officer Rolf Habben Jansen described the quarter as “unsatisfactory” but said the company’s Gemini network maintained service reliability during difficult operating conditions.
The company also confirmed it remains focused on its Strategy 2030 targets and the planned completion of its merger agreement with ZIM while continuing strict cost management measures.
The Terminal and Infrastructure division provided a brighter spot during the quarter. Revenues increased to USD 168 million, supported by the full consolidation of J M Baxi’s container business and stronger cargo volumes in Latin America and India. EBITDA for the segment rose to USD 47 million.
Outlook unchanged despite market uncertainty
Despite the weak first quarter, Hapag-Lloyd kept its full year guidance unchanged. The carrier expects 2026 Group EBITDA between USD 1.1 billion and USD 3.1 billion, while EBIT is forecast between a loss of USD 1.5 billion and a profit of USD 500 million.
The company said the outlook remains highly uncertain due to volatile freight rates and the ongoing conflict in the Middle East.
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