Hapag-Lloyd's profitability plummets in 2025 due to falling freight rates and rising costs, despite volume growth, reports S&P Global.
Hapag-Lloyd reported a steep drop in profitability in 2025 as declining freight rates and higher rerouting costs offset volume growth, reports London's S&P Global. The carrier stated that its Gemini Cooperation-driven expansion was not sufficient to counter a sharply correcting market.
The company increased transport volume by eight percent year on year to 13.5 million TEU, but average rates fell eight percent to US$1,376 per TEU. Full-year revenue declined 1.9 percent to $21.1 billion, while EBITDA dropped 28 percent to $3.6 billion. EBIT fell 60 percent to $1.1 billion, though this was at the higher end of its forecast.
Much of the financial damage occurred in the fourth quarter. Volume rose six percent, but revenue fell 7.4 percent to $5 billion. EBITDA dropped 42 percent to $800 million, while EBIT plunged 75 percent to $200 million.
Hapag-Lloyd mentioned that Gemini-related cost savings began to take effect in the second half of 2025 and will be fully realized in 2026. Savings are expected to reach between $350 million and $400 million, as part of a $1 billion cost program across its network.
