NYN | News
German shipping company Hapag-Lloyd has experienced a sharp decline in profits, dropping by 75% in the first half of this year. This significant decrease is attributed to the company’s decision to cease transiting the Red Sea in order to avoid attacks by the forces of the Sana’a government on ships transporting goods to Israel.
According to a report published by Reuters, the company’s profits during this period amounted to €732 million ($804.47 million), compared to €2.9 billion in the first half of the previous year.
The company, which is the fifth largest container shipping line in the world, explained that this decline comes amid significant fluctuations in shipping rates and geopolitical challenges, adding a high degree of uncertainty to future projections.
Hapag-Lloyd also confirmed that it has added new ships and containers this year to meet the increased capacity requirements resulting from the security situation in the Red Sea.
It is worth noting that Hapag-Lloyd was among the first companies to decide to avoid the Red Sea after one of its ships was attacked last December. Israeli media reports have indicated that the German company regularly transports goods to Israel, making it a potential target for the forces of Sana’a.
In a related development, shipping giant Maersk recently announced a 45% decline in its profits for the second quarter of this year, due to attacks carried out by the forces of Sana’a, which have prevented its ships from crossing the Red Sea to transport goods to Israel.
