Hapag-Lloyd achieved solid operational performance in 2025, but a steep decline in freight rates and rising disruption costs led to a sharp drop in earnings as the container shipping market continued its normalization.
The German shipping giant posted a Group profit of €924 million ($1.0 billion), a significant decrease from €2.4 billion in 2024. EBITDA fell to €3.2 billion, while EBIT dropped to €1.0 billion.
Despite the earnings decline, Hapag-Lloyd recorded strong volume growth, carrying 13.5 million TEU in 2025—an 8% increase that outpaced the broader market. This growth was bolstered by the rollout of its Gemini Cooperation with Maersk, which achieved approximately 90% schedule reliability, setting a new industry benchmark.
However, pricing pressures weighed heavily on results. Average freight rates declined by 8% to $1,376 per TEU as capacity returned to the market and trade imbalances persisted. Simultaneously, costs rose due to port congestion, tariff-related disruptions, Red Sea security tensions, and startup expenses associated with the Gemini network.
These factors led to a significant margin squeeze, with the EBITDA margin dropping to 17.1% from 24.3% and the EBIT margin falling to 5.1%.
Reflecting the lower earnings and a cautious outlook, Hapag-Lloyd announced plans to propose a reduced dividend of €3.00 per share, down from €8.20 the previous year.
Looking ahead, the company anticipates a challenging 2026, with EBITDA projected to range between €0.9 billion and €2.6 billion, and EBIT potentially turning negative. Management highlighted freight rate volatility and escalating geopolitical risks—particularly in the Middle East—as key drivers of the weaker forecast.
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CEO Rolf Habben Jansen described the operating environment as “more uncertain than ever,” citing slower market growth, increased vessel capacity, and ongoing geopolitical pressures. The company aims to mitigate some of these challenges through cost savings tied to the Gemini network.
Despite near-term headwinds, Hapag-Lloyd remains focused on its long-term strategy. In 2025, the company expanded its terminal portfolio and advanced plans to acquire ZIM, a move expected to strengthen its position among the world’s largest container carriers and deliver significant cost synergies if approved.
For now, the outlook is clear: while volumes are growing and operational performance is improving, earnings remain under pressure. With geopolitical risks on the rise, 2026 is shaping up to be an even more challenging year for the global shipping industry.
Source: gCaptain, Mike Schuler