Hapag-Lloyd expects lower profitability in fourth quarter

(Reuters) – Hapag-Lloyd expects lower profitability in the fourth quarter but still at a “good level”, after freight rates peaked in the third quarter, Rolf Habben Jansen, the CEO of the German shipping company, said at a press conference on Monday.

Habben Jansen also expects disruptions in the Red Sea linked to Houthi militants to continue well into 2025, meaning that rerouting around Africa would continue.

Hapag’s nine-month net profit fell by 47% as diverting container ships around Africa brought costs for the company.

The world’s fifth-biggest container shipping firm expects prolonged uncertainty beyond 2024 as volatile freight rates and geopolitical challenges persist.

Its Gemini joint venture with Danish peer Maersk remains on track with a network being built around the Cape of Good Hope, with bookings starting on December 3, and operations on February 1, 2025.

When asked about how potential tariffs under incoming U.S. President Donald Trump might affect world trade, Habben Jansen said he could not rule out some trade patterns changing in the future.

Hapag-Lloyd had enough capacity to reroute ships if needed, he added.

(This story has been refiled to add CEO Rolf Habben Jansen’s first name in paragraph 1, and the first part of his surname in paragraphs 2 and 6)

(Reporting by Andrey Sychev in Gdansk, Editing by Rachel More and David Goodman)