Hapag-Lloyd chief executive Rolf Habben Jansen has flagged a shift in container shipping markets that could put the brakes on the exceptional rally.

He noted “the first signs” of container spot rates easing in some trades, as well as the growing impact of rising fuel and charter costs.

The comments were made as the Hamburg-based company confirmed that it tripled profits in the first half of the year.

Group profit was €8.7bn ($9.5bn) in the six months to the end of June, up from €2.72bn in the same period last year.

That “extraordinarily strong business performance” was a result of “significantly improved freight rates”, Habben Jansen said.

Average freight rates rose to $2,855 per teu from $1,612 per teu in the same period last year.

Together with a stronger US dollar, that lifted revenues to €17bn.

Cost increases

Habben Jansen said the carrier has been hit by a steep rise in all cost categories, which is increasing pressure on unit costs, including much higher expenses for container handling and chartering ships.

It was also hit by a 67% increase in the average bunker consumption price.

Bunkers in the first half averaged $703 per tonne, compared with $421 per tonne in the same period last year.

The results come as no surprise after the company upgraded its profit forecast on 28 July, upgrading projections for Ebitda in the range of $19.5bn to $21.5bn this year.

That is about $5bn higher than previously forecast in April and compares with Ebitda of €10bn in the first half.

The profit boost has helped lift shares in the German carrier to around €340 at the start of trading on Thursday, more than €100 higher than where they traded in early July.

This rise in share value has added about $17bn to the market capitalisation of the Frankfurt-listed outfit in recent weeks, according to companiesmarketcap.com.

Hapag-Lloyd said global supply chains remained under pressure in the first half because of persistent capacity bottlenecks in ports and congested hinterland infrastructures, resulting in longer turnaround times for ships and containers.

Transport volumes were on a par with the prior-year level, at 6m teu.

The company flagged future uncertainties due to the war in Ukraine and Covid-19.