Middle East conflict costs Hapag-Lloyd US$600 million

Hapag-Lloyd incurred around US$600 million in additional costs as a result of the Middle East conflict, according to CEO Rolf Habben Jansen. The majority of the additional expenditure came from higher oil prices. The carrier also faced costs related to alternative land routes, insurance and the storage of containers affected by disruption in the region. Higher oil prices drive additional costs “The large majority of the USD 600 million was higher oil prices,” said Habben Jansen. “There were also the land bridges we had to build up, insurance costs and additional storage costs for boxes that were stuck for a while.”