Despite $600m Middle East Hit, Hapag-Lloyd Q2 Results Are Strong
The company said higher bunker, insurance and rerouting costs cut Liner Shipping EBIT to $153 million as freight rates and demand improved.
- On Thursday, Hapag-Lloyd reported the Middle East conflict and Strait of Hormuz closure cost the company about $600 million in the second quarter, weighing on earnings.
- Net profit fell to $83 million from $306 million a year earlier, while Liner Shipping EBIT dropped to $153 million from $167 million due to increased bunker, insurance, and rerouting costs.
- Jaguar Land Rover reported a 9.6% revenue decline to £6 billion for the three months ending June 30, driven by a 9.2% drop in car volumes.
- Production disruptions from a fire at a Norway supplier factory halted JLR's Range Rover and Range Rover Sport output, while the company wound down several Jaguar models including the F-Pace.
- Chief Executive Rolf Habben Jansen said Hapag-Lloyd will maintain strict cost discipline in the second half of 2026, while JLR executives anticipate launching the Range Rover Electric and Jaguar Type 01.
23 Articles
23 Articles
Hormuz disruption puts cost pressure on shipping lines even as freight rates rise
The disruption around the Strait of Hormuz is putting significant cost pressure on global shipping lines. Maersk and Hapag-Lloyd announced their quarterly financial results on Thursday, reporting higher bunker fuel, insurance, storage, rerouting and inland transportation expenses. This is even as they raise freight rates to pass on a part of the additional costs to customers.
The shipping company said the increase in volumes and spot rates helped offset the $600 million additional costs in the second quarter, resulting from the conflict in the Middle East.
Hapag-Lloyd recorded a loss for the first half of the year, driven mainly by additional costs caused by the Iran war. From the point of view of shipping manager Rolf Habben Jansen, this burdened maritime trade in many ways.
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