Hapag-Lloyd reports that its average bunker price fell year-on-year (YoY) by $78, or 11.1 percent, to $625 per tonne during the first half (H1) of 2023.

Bunker consumption in H1 for the German shipping line totalled 1.98m tonnes, which was down 6.6% on the 2.12m tonnes recorded a year earlier. The decrease was said to be due to lower transport volumes, the clearing of congestion in front of ports and lower vessel sailing speeds.

As a result, bunker expenses declined by EUR 225.5m, or 16.5 percent, to EUR 1,141.9m in H1 2023, down from EUR 1,367.4m in the prior-year period.

Bunker consumption

Bunker consumption per slot (measured by average container slot capacity, annualised) dipped 10% in H1 to 2.18 tonnes. The improvement was due to efficiency measures and lower bunker consumption, Hapag explained.

Bunker consumption per TEU transported also decreased in H1 — by 3% to 0.34 tonnes.

As regards the consumption of low-sulphur bunker (MFO 0.1% and 0.5%, and distillates) and LNG, Hapag said the H1 figure dipped YoY from 88% to 83% due to the fitting of more vessels with scrubbers.

Key financial results

In its overall results, Hapag-Lloyd posted a H1 profit of $3,133m (down 66.9% on the $9,466m result recorded in H1 2022) and a Q2 profit of $1,102 (77% below last year's figure of $4,782m).

EBITDA of $3,775m in H1 represents a 65.5% drop compared to the previous year's $10,942m result. Second-quarter EBITDA decreased YoY by $4,239m, or 75.2 %, to $1,396m.

Revenue in H1 fell 42% YoY from $18,562m to $10,847m, whilst in Q2 the figure dropped 49.8% from $9,606m to $4,819m.

Transport expenses in H1 were 9.3% below the prior-year level, at $6,330m. This was said to be primarily due a lower bunker consumption price of $625 per tonne and lower demurrage and detention expenses.