HAMBURG, Germany-headquartered Hapag-Lloyd's earnings have decreased significantly in the fiscal year 2023, with operating profits plunging to US$2.7 billion.

According to Hapag-Lloyd's preliminary and unaudited numbers, Group EBITDA was at $4.8 billion. This is primarily due to decreasing freight prices caused by the normalization of global supply networks, reports London's Port Technology.

Hapag-Lloyd also noted revenues fell to $19.4 billion, mainly due to a reduced average freight rate of $1,500/TEU (2022: $2,863/TEU).

Transport volumes in 2023 increased by 0.5 per cent to 11.9 million TEU (2022: 11.8 million TEU).

However, the Red Sea crisis had a detrimental influence on transport volumes at the end of the year, as ships had to be rerouted around the Cape of Good Hope, which increased trip times.

This month, Hapag-Lloyd suspended its Asia-Red Sea (AR1) service due to the Red Sea crisis.

Meanwhile, the carrier reported a $300 million year-over-year operating loss for the 2023 fourth quarter.

Hapag-Lloyd revealed that it will publish its 2023 Annual Report with the audited financial figures and an outlook for the current financial year on March 14, 2024.