Hapag-Lloyd has disclosed its preliminary financial results for 2025, revealing a significant drop in profits despite reaching the upper end of its guidance. The Hamburg-based container shipping company reported full-year revenues of $21.1 billion, with an EBITDA of $3.6 billion and EBIT of $1.1 billion. These figures represent a marked decline from the previous year, when EBITDA was $5.0 billion and EBIT stood at $2.8 billion.
The drop in earnings can be attributed to higher operating costs and a softening of freight rates. Average freight rates decreased by 8% to $1,376 per TEU, which offset the gains from increased shipping volumes. In contrast, Hapag-Lloyd’s shipping volumes rose to 13.5 million TEU in 2025, an 8% increase year-over-year, bolstered by stable global trade and the establishment of the Gemini Network.
Impact of the Gemini Network on Operations
The company highlighted that elevated costs were largely due to the ongoing rerouting of vessels via the Cape of Good Hope and the start-up expenses associated with the Gemini Network. “Higher costs due to the ongoing rerouting of ships via the Cape of Good Hope and start-up expenses for the Gemini Network weighed on the annual results,” the company stated. Nevertheless, it noted that cost savings related to the Gemini Network began to materialize in the latter half of the year and are expected to be fully realized by 2026.
The Gemini Network, established through a strategic partnership with A.P. Moller-Maersk, officially launched on February 1, 2025. It incorporates 29 shared mainline services and 29 shuttle services across East-West trade lanes. Earlier this month, Hapag-Lloyd and A.P. Moller-Maersk announced plans to reinstate one shared service to the Red Sea and Suez Canal corridor. This decision reverses the longer routing via the Cape of Good Hope that was implemented due to security concerns in the Red Sea.
The IMX service, which connects India, the Middle East, and the Mediterranean, will be the first to transition back to the Red Sea, with changes commencing in mid-February 2026, all under naval protection. “The highest possible security precautions will be undertaken, as the safety of the crew, the vessels, and the customers’ cargo remains the highest priority of both carriers,” the companies stated. The resumption of services through the Suez Canal will depend on the stability of the security situation in the region.
Hapag-Lloyd’s Global Operations and Future Outlook
Hapag-Lloyd operates a fleet of 305 container ships with a total capacity of 2.5 million TEU, providing services to over 600 ports worldwide. The company employs approximately 14,000 people across 400 offices in 140 countries, highlighting its extensive global presence.
The carrier is set to publish its full 2025 Annual Report, which will include audited results and an outlook for 2026, on March 26, 2026. As Hapag-Lloyd navigates the complexities of rising costs and market fluctuations, the strategic initiatives undertaken through the Gemini Network may play a crucial role in shaping its future performance.
