CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
US English

Profits surge tenfold for shipping operator Hapag-Lloyd (HLAG)

By Adrian Holliday

07:53, 12 November 2021

Hapag-Lloyd container ship
New Hapag-Lloyd numbers stun – Photo: Hapag-Lloyd

New results from the German-based international shipping operator Hapag-Lloyd released on Friday showed how carriers are reaping the benefits of surging freight rates and scarcer capacity following Covid-19 bottle-necks.

Hapag-Lloyd said that revenues for the first nine months of 2021 soared by 70% to $17.9bn (€15.6bn) and added that earnings momentum will remain “at a high level for the rest of the year”.

Third-quarter net profits catapulted to €2.83bn compared to €250.9m for the same period a year ago. Earnings per share for the nine-month period jumped to €31.60 from €3.01.

A previous EBITDA forecast for the full year was made on 29 October with pre-tax earnings estimated at €7.6bn-€9.3bn for the freight operator, which controls 257 vessels. This has now been raised to €10.1bn–€10.9bn.

Hapag-Lloyd said that the barnstorming earnings were primarily linked to a higher average freight rate of $1,818 TEU – the TEU freight rate is based on a twenty-foot shipping container – compared to the nine-month 2020 rate of $1,097. Hapag-Lloyd’s share price rose 1.75% to €220.80 in early trading, but has since fallen away.

Transport expenses also climbed for Hapag-Lloyd, up 16% in this nine-month period due to higher container handling.


0.66 Price
-0.390% 1D Chg, %
Long position overnight fee -0.0072%
Short position overnight fee -0.0011%
Overnight fee time 22:00 (UTC)
Spread 0.00050


1.08 Price
-0.300% 1D Chg, %
Long position overnight fee -0.0080%
Short position overnight fee -0.0003%
Overnight fee time 22:00 (UTC)
Spread 0.00050


1.26 Price
-0.380% 1D Chg, %
Long position overnight fee -0.0046%
Short position overnight fee -0.0036%
Overnight fee time 22:00 (UTC)
Spread 0.00130


0.66 Price
-0.390% 1D Chg, %
Long position overnight fee -0.0072%
Short position overnight fee -0.0011%
Overnight fee time 22:00 (UTC)
Spread 0.00050

Debt helped

The increase was partly offset by the weaker US dollar compared to the euro, Hapag-Lloyd said. The new numbers have still allowed net debt levels to be snipped by more than €3.4bn since the start of this year.

“Despite all the operational challenges, we achieved an extraordinarily strong nine-month result,” the company said in an earnings report this morning. “However, global supply chains are under enormous pressure, which further intensified during the peak season in the third quarter.”

“This unfortunately also creates additional operational burdens for carriers, ports and terminals – but, most importantly, for customers worldwide. We will do everything in our power to help with suitable offers and to do our part to resolve the situation through targeted investments and flexible capacity management,” said Rolf Habben Jansen, CEO of Hapag-Lloyd.

What is your sentiment on HLAG?

Vote to see Traders sentiment!

Rivals also reap profits from crisis

Before the pandemic, profitability for some freight players had been more arduous, with the lean streak stretching back through much of the previous decade. Recently, Hapag-Lloyd’s rival Maersk said it had the most profitable quarter ever with operating profits soaring to $5.9bn.

Hapag-Lloyd also took the opportunity today to confirm that Donya-Florence Amer was joining as chief information officer – the first woman to take an executive board position in the company’s 175-year history. Amer joins in February 2022. Hapag-Lloyd is dominated by five major shareholders, including Kühne Maritime GmbH, which control 96.4% of the share capital.

Read more: Hapag-Lloyd shares hit new high on huge profit increase

Markets in this article

110.885 USD
1.7 +1.570%

Related topics

Rate this article

The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
Capital Com is an execution-only service provider. The material provided on this website is for information purposes only and should not be understood as an investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page then you do so entirely on your own risk.

Still looking for a broker you can trust?

Join the 570.000+ traders worldwide that chose to trade with

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading