GERMAN international shipping and container transportation company Hapag-Lloyd has witnessed a successful 2022, with a significant increase in profits up to US$18 billion, but it has joined in the chorus of ocean carriers by sounding a cautionary note about the outlook for the container industry in 2023.

The world's fifth largest container line by capacity cited rising costs, the economy, and geopolitical uncertainties saying that it looks for a "gradual normalization of results" in the year ahead.

The company's EBITDA last year increased to $20.5 billion, while EBIT grew to $18.5 billion, in line with its previous forecast.

Revenues hit $36.4 billion primarily driven by an increase in the average freight rate, reports London's Port Technology.

Towards year-end, the freight rate experienced a significant decline owing to the alleviation of port congestion and reduced demand. Regardless, Hapag-Lloyd's transport volumes remained consistent with the previous year at 11.8 million TEU (compared to 11.9 million TEU in 2021).

"Overall, we look back on a very successful 2022 with exceptionally strong results. This has enabled us to strengthen our financial resilience and asset structure once again," said Rolf Habben Jansen, CEO of Hapag-Lloyd AG.

"In addition, we have improved the quality of service for our customers and invested in terminals and infrastructure as well as in the efficiency of our fleet. However, costs - such as for fuel, charter vessels and container handling - have risen significantly."

Mr Jansen added that despite a decent start to the current financial year, a substantial decline in earnings is inevitable due to a cooling economy.

Hapag-Lloyd is anticipating a gradual normalization of earnings during the current 2023 fiscal year, with an expected EBITDA range of $4.3 billion to $6.5 billion and EBIT range of $2.1 to $4.3 billion.

The company said it will maintain flexibility in the market and focus on cost management and sustainability.