Hapag-Lloyd, one of the largest steamship lines, faced significant challenges in the ocean container market as outlined in its 2023 annual report and Q4 financial results. Despite a slight increase in volumes, revenue dropped by 48.5% to 17.7 billion euros ($19.2 billion), and earnings before interest, taxes, depreciation, and amortization fell by 77.1% to 4.4 billion euros. This decline was primarily due to a collapse in average freight rates from $2,863 per TEU to $1,500 per TEU, significantly impacting profitability.

Despite the downturn, Hapag-Lloyd’s 2023 results were still the third-best in the company’s history. CEO Rolf Habben Jansen expressed optimism during discussions on CNBC, citing depleted inventories globally and a promising increase in volumes after the Lunar New Year. He anticipated an earlier start to peak season, with many importers aiming to bring goods between June and August.

Traditionally, peak season for ocean containers runs from September to October, coinciding with Golden Week. However, favorable year-over-year import comparisons have been influenced by the timing of the Lunar New Year. While 2023 saw a strong start in containerized imports, Habben Jansen predicted a weaker March in 2024. He suggested that elevated volumes resembling peak season levels could emerge as early as the beginning of summer, driven by labor conditions at East and Gulf Coast ports and potential strikes during contract negotiations. As a result, shippers may seek to expedite the movement of goods into the country.