Hapag-Lloyd, the German ocean carrier, reported a significant drop in profitability for full-year 2025 even as its transport volumes increased and revenues roughly met expectations.
In February 2025, Hapag-Lloyd and Maersk launched the Gemini Cooperation, a new operational network that replaces older alliance structures and pools vessel capacity across East-West trade routes.
Even though Hapag-Lloyd moved more cargo, average freight rates fell ~8% in 2025, eating into revenue gains from increased volumes. That’s a sign of intense competition and excess shipping capacity in container markets following the pandemic boom.
The rollout of the Gemini Network is a major logistical and commercial shift for one of the world’s largest carriers. Initial investment costs and operating adjustments can reduce near-term profits even as long-term service quality and efficiency improve.