Hapag-Lloyd plots wave of newbuilds while freight rates take a downturn
HAPAG-LLOYD chief executive Rolf Habben Jansen has confirmed the German container line will soon order up to 22 new container vessels as part of its long-term fleet modernisation and renewal programme.
Jansen said the new orders would focus on replacing the company’s ageing tonnage, particularly smaller ships approaching 25 years of service.
“We have decided to invest in up to 22 more new ships to replace our ageing fleet, especially in the smaller classes,” Jansen said. “We have more ships reaching 25 years of age and we plan to replace them with a mix of long-term chartered tonnage and owned vessels.”
The company is in advanced talks for newbuildings in the 1,800 teu, 3,000 teu and 4,500 teu size ranges, with final agreements expected within the next month.
“Negotiations are ongoing and we expect to communicate more details within the next 30 days,” Jansen added.
According to Jansen the new, fuel-efficient, tonnage will not only replace older vessels but will also reduce Hapag-Lloyd’s dependence on the charter market.
“We want to reduce our exposure to the very expensive time charter market,” he said.
Hapag-Lloyd has maintained a relatively modest orderbook compared with its peers, and the upcoming orders will mark its first new ship commitments in a year.
In November 2024, the company ordered 24 dual-fuel liquefied natural gas-powered boxships ranging from 9,200 teu to 16,800 teu at two Chinese shipyards, with deliveries scheduled between 2027 and 2029.
Earlier this year, the line took delivery of the final vessel in a series of 12 24,000 teu LNG dual-fuel boxships, Wilhelmshaven Express (IMO: 9943918), from South Korea’s Hanwha Ocean.
While acknowledging the global container ship orderbook is high — equivalent to 32% of existing fleet capacity — Jansen said that long lead times mean new tonnage will enter the market gradually.
“Yes, the orderbook is on the high side and more orders are expected, especially for smaller ships,” he said. “But for now, I would argue that the fleet will be significantly better balanced than feared.”
Jansen estimated that around 20% more fleet capacity will be needed by the end of the decade to meet trade growth, while many older vessels will be retired.
Hapag-Lloyd, the world’s fifth-largest container carrier, reported $5.4bn in total revenue for the third quarter of 2025, down 11% year-on-year.
Earnings before interest, taxes, depreciation and amortisation for the quarter came in at $853m, more than halving from $1.7bn in the same period last year.
For the first nine months of 2025, group revenue rose slightly to $16.6bn, up from $16.2bn in 2024, while first nine months ebitda declined to $2.9bn from $3.8bn a year earlier.
Hapag-Lloyd attributed the drop in earnings to higher operating costs, unfavourable currency movements and lower average freight rates compared with 2024.
Xeneta chief analyst Peter Sand said Hapag-Lloyd’s margin of 15.5% trails that of Maersk’s 19.5%, though its freight rate decline was far less severe than rivals.
Freight rates fell 13.7% year-on-year, compared with sharper drops of 24.8% for Ocean Network Express, 30.7% for Maersk and 27% for OOCL.
Despite weaker rates, Hapag-Lloyd’s container volumes grew 6.1% year on year in the third quarter, outperforming most peers. Maersk reported 7% growth, ONE 1% and OOCL 0.7%.
By trade lane, Hapag-Lloyd expanded its presence in the transpacific market, with volumes up 19.2%. Asia-Europe trades saw modest growth of 1%, transatlantic volumes slipped 0.9% while Africa and intra-regional trades rose 4.4%.
With results broadly in line with expectations, the company narrowed its full-year ebitda guidance to a range of $3.2bn to $3.8bn.
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