Michael Kastl, Managing Director Treasury, Finance & Investor Relations, speaks with the Chief Executive Officer of
Hapag-Lloyd AG about business developments in 2024
Michael Kastl: Rolf, how do you view the 2024 financial year?
Rolf Habben Jansen: Overall, 2024 was a very successful year for us. Thanks to the unexpectedly strong demand, we increased our transport volume by 5% and thereby achieved an operating result of EUR 2.6 billion, despite the higher transport costs. This is not only slightly above the previous year’s level, but also clearly above the expectations we expressed at the beginning of the year. At the same time, with an equity ratio of 62% and net liquidity of EUR 0.9 billion, we continue to have a very strong balance sheet. Our shareholders should also benefit from the very good business performance. For this reason, our Executive Board and our Supervisory Board will jointly propose to the Annual General Meeting on 30 April 2025, to pay out a dividend of EUR 8.20 per share – which corresponds to a total payout of EUR 1.4 billion, which once again makes the Hapag-Lloyd share one of the most attractive dividend-bearing stocks in Germany.
How did the tense security situation in the Red Sea impact operations in 2024?
It had a big impact on the year. We rerouted our ships around the Cape of Good Hope to keep our seafarers and our customers’ cargo safe. This led to longer transit times and higher transport costs. Other major challenges included the low water level in the Panama Canal and numerous port strikes, particularly on the US East Coast. To keep our supply chains largely intact and continue to offer our customers a reliable service, we have significantly expanded our vessel and container fleets.
What were the strategic highlights for you in the past financial year?
First of all, I am once again very pleased with the high level of satisfaction among our customers. In addition, we have made good progress with the establishment of our terminal holding company in Rotterdam and have further honed our market presence with the Hanseatic Global Terminals brand. We have also enhanced our digital services, such as LIVE Position, which gives our customers greater transparency when tracking their shipments. At the same time, we have significantly strengthened our expertise in data and artificial intelligence. Another milestone was our order for 24 new vessels, which will enable us to expand our capacities in a targeted manner and further modernize and decarbonize our fleet. Last year, we already sold over 200,000 TEU of our low-emission transport solution “Ship Green,” and by winning the Zero Emission Maritime Buyers Alliance (ZEMBA) tender, the proportion of green transport solutions in our portfolio will grow. But to do that, the green fuels first have to be available. By concluding a long-term offtake agreement for green methanol, we will be able to save up to 400,000 metric tons of CO2e emissions per year in our fleet operations compared to using conventional fuels – which represents yet another step toward more climate-friendly shipping.
One important milestone was the agreement on a new operational cooperation with Maersk, which was launched in February 2025. How satisfied are you with the start of “Gemini Cooperation”?
This was definitely an extremely important step for us. With Gemini Cooperation, we aim to set new standards in the liner shipping industry in terms of reliability, connectivity, and sustainability. Our operational collaboration on the main east-west trades has gotten off to a very good start, and we are very satisfied with the demand from our customers so far. We are currently pressing ahead with the gradual shifting of our services to the new network and getting the network fully phased in. Then we will make another significant leap forward in terms of quality this year, as a key component is our ambitious customer promise to achieve schedule reliability of 90%.
At the beginning of 2025, there are still a number of unresolved geopolitical challenges. How confident is Hapag-Lloyd about the current financial year?
We continue to keep a very close eye on the situation in the Middle East, and some developments give us cause for hope. But we won’t change our network again until passage through the Red Sea is safe. Another issue is new trade restrictions in the form of tariffs. It isn’t fully foreseeable yet how these will ultimately impact global trade relations. But one thing is already certain: Global trade will continue to be of vital importance in the future and will find its way, even if individual flows of goods are to shift. For this reason, most experts expect moderate growth in global container transportation in the current financial year, as well. Nevertheless, container shipping is and will remain a highly competitive industry. So we will continue to work hard to reduce our per-unit costs and thereby strengthen our competitive position.
What will be the strategic focus in the current financial year?
Quality is and will continue to be our top priority. We want to set new standards in terms of schedule reliability and with our digital services. Our colleagues around the world will play a decisive role in this, and their engagement and expertise will be the key to our success. That’s why we will continue to invest in enhancing the expertise of our workforce. We will benefit from the opportunities offered by attractive growth markets, win over our customers with the right offerings, and continue to expand our business. At the same time, sustainability will continue to be a key issue. We remain committed to the Paris Agreement and will continue to intensify our efforts to decarbonize our fleet. In this way, in addition to living up to our ecological responsibility by working step by step toward our goal of being climate-neutral by 2045, we will also secure Hapag-Lloyd’s long-term competitiveness.
