According to Hapag Lloyd's report with audited company results for the 2020 financial year, the carrier's earnings before interest, taxes, depreciation, and amortization (EBITDA) increased to more than $3 billion, while earnings before interest and taxes (EBIT) increased to approximately $1.5 billion.

Furthermore, the group's net profit increased to $1.1 billion.  The main drivers, as previously stated, were cost savings of more than $500 million, slightly improved freight rates, and lower bunker prices.

Revenues increased by about 3% in the 2020 fiscal year, to around $14.6 billion. This is mostly due to a 4% rise in the average freight rate, which now stands at 1,115 USD/TEU.

According to Hapag-Lloyd, transport volumes at the end of the year were slightly lower than the previous year, at 11.8 million TEU (-1.6%), but significantly higher than the level expected at the start of the pandemic.

Due to unusually high demand, which culminated in a substantial rise in freight prices, the company is off to a great start in 2021.

A major increase in the average bunker consumption price is also anticipated, according to the shipping company.

However, due to a variety of factors, including above-average volatility in freight prices at this time of year and operational difficulties, such as those caused by infrastructural bottlenecks, the outlook remains highly uncertain. Furthermore, the coronavirus pandemic's future trajectory and economic effects cannot be anticipated at this time.

Maritime Business World