dpa

Hamburg

The German shipping company Hapag-Lloyd has raised its profit forecast for the current financial year because of rising freight rates.

Based on preliminary figures, earnings before interest and taxes (EBIT) rose to around Euro1.8 billion ($1.9 billion) in the first nine months of this year alone, the company announced in Hamburg on Friday.

The range of profit expectations for the full year has been increased to between Euro2.2 billion and 2.6 billion. Hapag-Lloyd had previously expected earnings before interest and taxes of between Euro1.2 billion and Euro2.2 billion for 2024.

The shipper is benefiting from higher-than-expected demand and improved freight rates, despite higher expenses due to the rerouting of ships around the Cape of Good Hope, which became necessary due to the attacks by Yemen’s Houthi militia, an ally of Iran.

The company pointed out that the forecast was subject to a high degree of uncertainty due to the volatile development of freight rates and major geopolitical challenges. Hapag-Lloyd will present the final business figures for the first nine months in mid-November.