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GDANSK (Reuters) -Germany-based international shipping company Hapag-Lloyd said on Thursday that it is raising its full-year earnings guidance, citing stronger-than-expected demand and improved freight rates.
Despite increased expenses from the diversion of vessels around the Cape of Good Hope, Hapag-Lloyd says it now expects earnings before interest, taxes, depreciation, and amortization (EBITDA) for 2024 to be between $4.6 billion and $5 billion, previously expecting between $3.5 and $4.6 billion.
However, against the backdrop of very volatile freight rates and major geopolitical challenges, the forecast is subject to a high degree of uncertainty, added Hapag-Lloyd.
Attacks in the Red Sea by Iran-aligned Houthi militants have since late last year forced shipping companies to reroute traffic away from the Suez Canal and instead sail around Africa, a longer journey that ties up more capacity.
The company, which specializes in global container liner shipping, also announced its preliminary nine-month figures, saying it achieved an EBITDA of about $3.6 billion, down from $4.5 billion in the same period last year.
Final results are due to be published on Nov. 14.
(Reporting by Marleen KaesebierEditing by Miranda Murray)
