German shipping company Hapag-Lloyd is incurring additional costs of $40 million to $50 million per week due to the ongoing conflict in the Middle East, a burden described as "not sustainable for a long time" by Chief Executive Rolf Habben Jansen on Thursday. Speaking at an online press conference, Habben Jansen said the company was grappling with "a big challenge" as six of its vessels, with 150 crew members, remain stranded in the Persian Gulf.
He confirmed that the crews are being supplied with food and water and efforts are underway to secure the ships' release. 2026 OUTLOOK UNCHANGED AMID CHALLENGES Despite the disruption, Hapag-Lloyd reaffirmed its 2026 full-year forecast, with Habben Jansen expressing confidence in balancing out the added expenses in the months ahead.
The company projects earnings before interest, tax, depreciation, and amortisation (EBITDA) between $1.1 billion and $3.1 billion. The outlook for earnings before interest and tax (EBIT) spans from a loss of $1.5 billion to a profit of $0.5 billion. Habben Jansen warned of potential longer-term repercussions from the conflict, particularly if it weakens demand.
In response, Hapag-Lloyd has intensified cost-saving measures and is leveraging synergies from its cooperation with Maersk. The six stranded ships remain affected by the closure of the Strait of Hormuz, a critical maritime route that has been off-limits to commercial shipping since late February following escalated U.S.-Israeli and Iranian hostilities.
(Reuters)