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Hapag-Lloyd reported solid growth in container volumes in 2025 that were offset by tumbling profits on weaker ocean shipping rates and higher costs.
The world’s fifth-largest carrier forecast potential losses in a challenging 2026 as geopolitics and industry-wide capacity issues threaten volatile rates.
Liner shipping revenues in 2025 increased to $20.6 billion from $20.3 billion the previous year. But earnings before interest, taxes, depreciation and amortization (EBITDA) fell to $3.5 billion from $4.9 billion, and earnings before interest and taxes (EBIT) more than halved, to $1 billion from $2.7 billion.
Container volumes rose 8% to 13.5 million twenty foot equivalent units (TEUs) as the company partnered with Maersk (MAERSK-B.CO) on the cooperative Gemini service. Average freight rate decreased 8% to $1,376 per TEU “due to growing capacity and increasing trade imbalances. Additionally, higher costs resulting from operational disruptions caused by new tariff policies, ongoing security tensions in the Red Sea, start-up expenses for the Gemini Network, and port congestion had a negative earnings impact,” the company said in an earnings release.
It added Gemini-related cost savings started kicking in during the second half of 2025 and will be fully realized in 2026. One-time non-cash effects in the fourth quarter had a positive impact.
The company forecast 2026 pre-tax earnings in the range of -$1.5 billion to $500 million “subject to considerable uncertainty due to the highly volatile development of freight rates and the conflict in the Middle East.”
“2025 was a good year for Hapag-Lloyd with solid results,” said Chief Executive Rolf Habben Jansen, in the release. “We have grown our volumes and outperformed the market. Our Gemini network delivered 90% schedule reliability and customer satisfaction reached another record high. We invested significantly in fleet efficiency and modernization to further decarbonize our operations. Additionally, our growing terminals portfolio increasingly contributed to the success of our liner business.”
Read more articles by Stuart Chirls here.
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