finance
Hapag-Lloyd Reports Up to $60 Million Weekly Cost From Strait of Hormuz Disruption
Hapag-Lloyd said the disruption in the Strait of Hormuz is costing the company as much as $60 million per week. CEO Rolf Habben Jansen cited higher fuel expenses and the need to reroute cargo by truck and rail. The company also reported a quarterly loss of €219 million with four vessels stranded in the Persian Gulf.
May 13, 2:57 PM·1m read2 sources
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Hapag-Lloyd said the ongoing disruption in the Strait of Hormuz is costing the shipping company as much as $60 million per week. CEO Rolf Habben Jansen said the increase stems from higher fuel costs and the rerouting of cargo by truck and rail. The company added that freight rates will likely rise to help offset those expenses.
Hapag-Lloyd also reported a quarterly loss of €219 million. Four of its vessels remain stranded in the Persian Gulf amid regional tensions in the area. The company did not provide a specific timeline for when those vessels might resume normal operations.
The weekly cost figure reflects additional expenses tied directly to the disruption. Jansen said the combination of elevated fuel prices and alternative transport methods accounts for the bulk of the added costs. Shipping companies have faced similar pressures when key maritime chokepoints experience delays or closures.
The company stated that higher freight rates are expected as one response to the situation. Such adjustments have been used in the past to pass on increased operational expenses to customers. No details were given on the expected size or timing of any rate increases.
Four vessels operated by Hapag-Lloyd are currently stuck in the Persian Gulf. The company linked their situation to the broader regional tensions affecting the Strait of Hormuz. Shipping sources monitor such disruptions closely because the strait handles a significant portion of global oil and container traffic.
