Hapag-Lloyd CEO cites resilient demand, but sees shipping market exposed to Middle East disruption
Rolf Habben Jansen says container demand has held up better than expected despite tariffs and geopolitical turmoil, while higher costs and uncertainty over Red Sea routings continue to cloud the market outlook. The post Hapag-Lloyd CEO cites resilient demand, but sees shipping market exposed to Middle East disruption appeared first on FreightWaves .
Hapag-Lloyd CEO Rolf Habben Jansen highlighted the resilience of container shipping demand, attributing it to unexpected strength despite ongoing challenges. He acknowledged route disruptions stemming from Middle Eastern conflicts, escalating operational costs, and uncertainty regarding the return of Red Sea routes. The Middle East situation remains "very strained," according to Jansen.
In response, Hapag-Lloyd has halted transits through the Strait of Hormuz to safeguard crew safety in light of security risks. This move has resulted in volatile freight rates and substantial expenditures on carriers. Despite these pressures, Jansen has maintained a constructive outlook on demand, stating that the shipping sector has demonstrated "surprisingly strong" resilience.
High tariffs, ranging from 15% to 20%, are detrimental to global trade but do not halt it entirely. Hapag-Lloyd is reassessing its $4.2 billion acquisition of Zim, focusing on addressing Israeli security concerns while preserving the deal's completion by year-end. The merged entity would boast more than 400 vessels, 3 million TEUs of capacity, and annual volumes surpassing 18 million TEUs.
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