Hapag-Lloyd, the container shipping company, released its unaudited financial results for the third quarter, disclosing an EBITDA of $3.6 billion and an EBIT of roughly$1.9 billion for the first nine months of 2024. This contrasts with an EBITDA of $4.5 billion and an EBIT of$3 billion recorded during the same period in 2023.

The company is set to unveil its comprehensive financial report for the first three quarters of 2024 on November 14th.

Container shipping lines have seen a boost from the rerouting of vessels around the Cape of Good Hope, which has absorbed the anticipated surplus capacity from newly built ships entering service and an early peak season. This was driven by shippers looking to circumvent potential disruptions later in the year, thereby pushing up freight rates.

In a statement, Hapag-Lloyd AG’s Executive Board noted, “Considering the current business trends, marked by a stronger-than-anticipated demand and enhanced freight rates, and in spite of the increased costs associated with the mandatory detour around the Cape of Good Hope, we are upgrading our earnings outlook for the fiscal year 2024.”

The company has adjusted its full-year EBITDA forecast to a range of $4.6 to$5.0 billion, up from the previous $3.5 to$4.6 billion, and its EBIT forecast to between $2.4 to$2.8 billion, an increase from the earlier $1.3 to$2.4 billion.

Despite the container shipping industry’s better-than-expected performance this year, influenced by external factors, Hapag-Lloyd cautioned that the market could shift abruptly. The company issued a warning, saying, “Given the highly volatile nature of freight rates and significant geopolitical hurdles, the forecast carries a high level of uncertainty.”