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Hapag-Lloyd Stock: Volume Boom, Profit Bust

Felix Baarz by Felix Baarz
August 14, 2025
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Germany’s largest container shipping company faces a paradox: while transport volumes hit record highs, profits plummeted dramatically. In Q2 2025, operating earnings (EBIT) collapsed by over 65%, dropping from €450 million to just €156 million. The Hamburg-based firm moved 3.4 million standard containers between April and June—a 12.4% year-on-year increase—yet revenue rose only marginally by 2% to €4.6 billion. The slump is attributed to startup costs for the new "Gemini" alliance with Maersk, port disruptions, and expensive route diversions, compounded by declining freight rates. Full-year EBIT guidance was cut from €1.5 billion to €1.1 billion.

Geopolitics Squeeze Margins

Despite higher volumes across all routes, geopolitical tensions and new U.S. tariffs dampened profitability, particularly on lucrative Americas trades. The Red Sea crisis forced costly detours via the Cape of Good Hope, pushing costs per container higher. Management aims to offset pressures with a €1 billion cost-cutting program by 2026. The Gemini network, however, shows promise with 90% schedule reliability—a potential long-term advantage. Shares traded at €133, well below their 52-week high of €174.60, reflecting investor caution amid uncertain recovery prospects.

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Felix Baarz

Felix Baarz

My name is Felix Baarz, and I look back on over fifteen years of experience as a business journalist. I have always been fascinated by the mechanisms and dynamics of global financial markets as well as the complex economic and political interconnections that shape our world. With this passion, I have made a name for myself as an expert on international financial markets and dedicate myself with great commitment to making even the most complex topics understandable and accessible to my readers. My roots lie in Cologne, where I was born and raised. Early on, my curiosity about economic topics and international developments sparked my interest in journalism. After completing my studies, I began my career as a business editor at a respected German trade publication. Here I laid the foundation for my professional career, but my curiosity soon drew me out into the wider world. A turning point in my life was moving to New York, where I lived for six years and gained insight into leading media houses. In this vibrant metropolis, I was able to report firsthand from the heart of the global financial world. From daily developments on Wall Street to major economic policy decisions that make waves worldwide, I had the opportunity to write about central topics that move people and markets alike. This time shaped my perspective and sharpened my view of global interconnections.

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