• Hapag-Lloyd is incurring up to $60 million per week in extra costs due to the Strait of Hormuz disruption.
  • The company reported a quarterly net loss of €219 million, with four vessels stranded in the Persian Gulf.
  • CEO Rolf Habben Jansen warns that freight rates will likely rise to offset higher fuel, insurance, and rerouting expenses.

Disruption Costs Mount

Shipping giant Hapag-Lloyd is feeling the heat from ongoing tensions in the Strait of Hormuz, with CEO Rolf Habben Jansen revealing that the disruption is costing the company up to $60 million per week. The costs stem from higher bunker fuel prices, increased war-risk insurance premiums, and the need to reroute cargo by truck, rail, or alternative sea lanes. "It's a significant burden," Habben Jansen said in a call with analysts, noting that without a resolution, freight rates will have to rise to cover the expenses.

The company reported a quarterly net loss of €219 million, driven partly by the disruption. Four of its vessels remain stranded in the Persian Gulf, unable to transit the strait safely. Hapag-Lloyd has been forced to divert ships around the Cape of Good Hope or use overland routes, adding days to transit times and straining capacity.

Industry-Wide Impact

The Hormuz closure is affecting the entire shipping industry, with other carriers also facing higher costs and delays. Hapag-Lloyd has introduced surcharges to cushion the blow, but Habben Jansen emphasized that "without a deal to reopen the strait, the situation will continue to erode margins." The company is in active discussions with insurers and security partners to manage risks, but no quick resolution is in sight.

Analysts note that the disruption is accelerating a shift in routing strategies, with carriers diversifying away from the chokepoint. "This could have long-term implications for global supply chains," said one industry expert. Hapag-Lloyd's cost-control measures, including fleet optimization and fuel hedging, are only partially offsetting the impact.

Outlook

Hapag-Lloyd has not provided specific guidance for the coming quarters, citing uncertainty. However, Habben Jansen warned that if tensions persist, "we will see higher costs passed on to customers." The company continues to monitor the situation closely, with contingency plans in place for further escalation.

Correction: An earlier version of this article misstated the number of stranded vessels. Hapag-Lloyd has four vessels stuck in the Persian Gulf, not six.