FRANKFURT (Reuters) -Container shipping company Hapag-Lloyd reported a 3.1% decline in first-half net income on Thursday and lowered the top end of its full-year earnings forecast, largely due to uncertainty over geopolitical issues and U.S. trade policy.
The world’s fifth-largest shipping firm projected full-year earnings before interest and taxes ranging between 200 million euros and 1.1 billion euros, compared with a previously expected range of breakeven to 1.5 billion euros.
Frequent changes in U.S. tariff policies have caused volatility in trade patterns, and the tense security situation in the Red Sea has also been a burden, resulting in 24% lower EBIT at 619 million euros in the six months, the German company said.
Houthi militant attacks on Middle Eastern shipping have clouded the outlook for global shipping, with vessel owners being forced to sail a costly alternative route around Africa.
Net income in the first half fell 3.1% to 709 million euros ($829 million).
However, revenues were up 10% at 9.7 billion euros and transport volumes grew 10.6% to 6.7 million 20-foot-equivalent (TEU) containers, spurring CEO Rolf Habben Jansen to talk of a “solid note overall.”
The company’s operational collaboration with bigger rival Maersk – known as Gemini – got off to a good start, but costs needed to be optimised, he said.
Germini brings together a network of 340 ships on seven trade corridors.
($1 = 0.8549 euros)
(Reporting by Vera Eckert, Editing by Ludwig Burger and Bernadette Baum)
