Hapag-Lloyd Estimates Eight Weeks to Restore Shipping
Hapag-Lloyd expects shipping to take eight weeks to normalize after a US-Iran ceasefire. CEO Rolf Habben Jansen noted weekly costs have risen to $60 million.
HAPAG-LLOYD AG has expressed cautious optimism regarding the potential resumption of shipping through the Strait of Hormuz following a two-week ceasefire agreement between the United States and Iran. However, the shipping giant warned that returning to a normal traffic schedule across its global network would likely require at least six to eight weeks.
During a call with customers on Wednesday, CEO Rolf Habben Jansen noted that the situation in the Middle East remains fluid and continues to disrupt both shipping lanes and global supply chains. His remarks reflect a broader industry caution, echoing similar sentiments recently expressed by the container shipping group Maersk.
Even if a ceasefire has now been agreed overnight, I would say that its fair to say that the conflict in the Middle East is still severely disrupting shipping, but also supply chains.
The ongoing crisis has led to a significant rise in operational expenses for the Germany-based carrier. Habben Jansen estimated that additional costs now range between $50 million and $60 million per week, an increase from previous estimates of $40 million to $50 million. He indicated that Hapag-Lloyd would likely need to pass some of these expenses on to its customers.
Currently, approximately 1,000 vessels remain stuck in the region due to the disruptions. Among these are six ships operated by Hapag-Lloyd, representing a total capacity of about 25,000 standard containers.
