Cautious Optimism as Shipping Awaiting Green Light in The Strait of Hormuz

Hapag-Lloyd remains cautiously optimistic about resuming shipping through the Strait of Hormuz following a two-week ceasefire between the U.S. and Iran. However, the full resumption of normal operations could take six to eight weeks. CEO Rolf Habben Jansen stressed the need for further security assurances as the situation remains fluid.

Hapag-Lloyd has expressed cautious optimism about the possibility of reopening shipping routes through the Strait of Hormuz. This comes on the heels of a two-week ceasefire agreement between the United States and Iran. Despite the tentative deal, CEO Rolf Habben Jansen indicated that it would take six to eight weeks to fully resume normal shipping activities.

During a customer call, Jansen pointed out that, despite the ceasefire, there are ongoing disruptions in the Middle East that continue to affect shipping and supply chains. He cautiously mentioned the possibility of accepting new orders, contingent on the stability of the ceasefire over the coming days. Jansen foresees the reopening of bookings into the upper Gulf area for selected markets in the near future.

Following the announcement, Hapag shares rose by 5.5% as markets reacted positively to the ceasefire agreement, despite Maersk shares experiencing a slight decline. Jansen also disclosed that the conflict has incurred additional weekly costs of $50 to $60 million, which would need to be partly passed onto customers. He noted that around 1,000 ships remain stalled in the region, including six vessels from Hapag-Lloyd.

(With inputs from agencies.)