Red Sea torpedoes Hapag-Lloyd rates

Hapag-Lloyd said container volumes surged 8% in 2025 from the previous year but the average price to carry a container of freight fell by the same percentage as operating costs soared on longer voyages away from the Red Sea.

The German company (HLAG.DE) said preliminary data showed revenues of $21.1 billion in the 2025 financial year, up from $20.7 billion y/y. Earnings before interest, taxes, depreciation and amortization (EBITDA) were $3.6 billion, off 1.4% from $5 billion, while earnings before interest and taxes came to $1.1 billion, down 1.7% to $2.8 billion.

The fifth-largest carrier by TEU capacity said its 2025 alliance with Maersk (MAERSK-B.CO) on the east-west Gemini Cooperation and robust trade growth boosted freight volume by 8% to 13.5 million TEUs. At the same time, the average freight rate fell by 8% y/y, to $1,376 per TEU. It cited higher costs due to the ongoing rerouting of ships away from the problematic Red Sea-Suez Canal and  around the tip of Africa, and start-up expenses for Gemini. 

The partners, with naval assistance, have restarted at least one scheduled service on the Red Sea route.