German shipping giant Hapag-Lloyd expects to make a profit in 2024, the company said on Wednesday.
After strong business developments in the first quarter, the company said its expected earnings before interest and taxes (EBIT) would range between breaking even and €1 billion ($1.08 billion). Previous estimates had included a potential loss of €1 billion.
Hapag-Lloyd said its forecast is subject to a high degree of uncertainty due to highly volatile transport prices and major geopolitical changes.
The company suffered a significant drop in earnings in the first quarter as turnover fell by almost a quarter to €4.3 billion, while EBIT slumped by 80% to €365 million and profits were €299 million.
The results were nonetheless better than analysts had expected.
The shipping industry benefited from sky-high demand and prices in the wake of the pandemic, which caused significant supply chain bottlenecks across the globe.
However, an oversupply of shipping and disruptions to global trade caused in part by attacks on the Red Sea by Houthi militants in Yemen have led to struggles in the sector.