Headline: Hapag-Lloyd Raises Full-Year Earnings Forecast

The Germany-based global shipping company Hapag-Lloyd has announced an upward revision of its full-year earnings forecast for 2024 due to an unexpected surge in demand and favorable freight rates. The company now expects its earnings before interest, taxes, depreciation, and amortization (EBITDA) to range between $4.6 billion and $5 billion. This marks a significant increase from the previously estimated range of $3.5 billion to $4.6 billion.

The revised forecast comes despite increased costs incurred as the company reroutes its ships around the Cape of Good Hope. This change in route became necessary due to a disruption in usual traffic through the Suez Canal caused by attacks from Iran-backed Houthi militants in the Red Sea since late last year. The detour around Africa means a longer journey for ships and ties up additional capacity.

Hapag-Lloyd has warned that this updated earnings forecast remains subject to a high degree of uncertainty, given the volatile nature of freight rates and the complex geopolitical environment affecting global trade.

The shipping giant also shared preliminary financial results for the first nine months of 2024, reporting an EBITDA of approximately $3.6 billion. This figure represents a decrease compared to the $4.5 billion recorded during the same period last year. The company is set to release its final results on November 14, which will provide a more comprehensive overview of its financial performance.