German ocean carrier Hapag-Lloyd recorded “extraordinarily strong” operating results in 2021 thanks to higher freight rates, although volumes remained relatively flat amid congestion and disruptions in the supply chain.
Preliminary figures released Tuesday showed the company’s earnings before interest, taxes, depreciation and amortisation (EBITDA) of more than $12.8 billion in FY 2021, up from $9.6 billion in 2020. Earnings before interest and taxes (EBIT) rose to roughly $11.1 billion.
“The main drivers of these positive business developments have been significantly improved freight rates resulting from very strong demand for goods exported from Asia. At the same time, the major disruptions in global supply chains have led to a significant increase in transport expenses,” Hapag-Lloyd said in its update.
With a fleet of 257 modern ships and combined capacity of 1.8 million TEU, Hapag-Lloyd ranks as the world’s fifth largest operator of containerships, according to Alphaliner’s rankings.
The preliminary figures show revenues increased to roughly $26.4 billion, up from $11.8 billion in 2020, even as transport volumes remained mostly flat year-over-year.
“This can mainly be attributed to a higher average freight rate of 2,003 USD/TEU (2020: 1,115 USD/TEU). Transport volumes were roughly on a par with the prior-year level, at 11.9 million TEU (2020: 11.8 million TEU), due to the strained supply chains,” the company said.
Q4 EBITDA came in $4.7 billion on revenues of $8.4 billion, while transport volumes fell to 2.9 million TEU in the fourth quarter, compared to 3.1 million TEU in Q4 2020.
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