Hapag-Lloyd raises outlook for third time on strong freight rates

By Amir Orusov

Nov 11 (Reuters) - German container shipping group Hapag-Lloyd raised its full-year earnings outlook for the third time this year on Wednesday, citing strength in freight rates and a stronger-than-expected performance in the fourth quarter.

The shares rose as much as 6.8% after the announcement and were up 4.2% by 1127 GMT.

The upgrade adds to a series of positive outlook revisions across the European logistics sector, where resilient global trade, elevated shipping rates and persistent supply-chain disruptions have supported earnings and boosted profitability.

Hapag-Lloyd now expects full-year earnings before interest and taxes of $2.0 billion to $2.4 billion, up from an earlier range of $1.25 billion to $1.75 billion. It also lifted the earnings before interest, taxes, depreciation and amortisation guidance to $4.6 billion to $5.0 billion, from $3.9 billion to $4.4 billion previously.

Freight rates have stayed elevated as Red Sea rerouting, Asian port congestion and Panama Canal restrictions reduced effective shipping capacity, while infrastructure bottlenecks amplified disruptions and kept container markets tight, Morningstar analyst Ben Slupecki said.

Slupecki also anticipates a strong fourth quarter from Danish shipping group Maersk, but does not expect the company to raise its guidance further this year, he added.

Senior economist Rico Luman from ING Research said the year had turned out much stronger than expected for container shipping and logistics firms, with disruption-driven freight rates more than offsetting fuel-price pressures, while the 2027 outlook for container demand also remains favourable.

The latest increase follows Hapag-Lloyd's earlier outlook hikes in July and September, and reflects sustained strength in container shipping markets and the management's improved expectations for year-end trading.

(Reporting by Amir Orusov in Gdansk, additional reporting by Anastasiia Kozlova, editing by Thomas Seythal, Louise Heavens and Milla Nissi-Prussak)