Hapag-Lloyd profit jumps as stronger freight rates drive guidance upgrade
Transportationvia FreightWaves
Quick Read
Hapag-Lloyd reported sharply higher third-quarter earnings on Thursday, a day after raising its full-year outlook as robust spot freight rates fueled better-than-expected fourth-quarter trading. The German container shipping company posted third-quarter group profit of $999 million, compared with $172 million a year earlier. Earnings before interest, taxes, depreciation and amortization, or EBITDA, nearly doubled to $1.73 billion from $866 million, while earnings before interest and taxes, or EBIT, rose to $1.09 billion from $228 million. Revenue increased to $6.88 billion from $5.46 billion. Hapag-Lloyd (HLAG.DE), which partners with Maersk (OTC: AMKBY) on Gemini services, now expects 2026 EBITDA of $4.6 billion to $5.0 billion, up from its previous forecast of $3.9 billion to $4.4 billion. It also raised its EBIT outlook to $2.0 billion to $2.4 billion from $1.25 billion to $1.75 billion. The executive board approved the upgrade on Nov. 11, citing continued strength in spot freight rates. The carrier also said it expects to receive regulatory approvals for its purchase of Zim in the first quarter of 2027. The third-quarter improvement came primarily from higher freight rates rather than increased cargo volumes. The company’s average freight rate rose to $1,808 per twenty-foot equivalent unit, or TEU, from $1,413 a year earlier. Volumes were broadly unchanged at 3.38 million TEUs, compared with 3.40 million TEUs in the prior-year quarter. “We delivered a strong third quarter, driven by significantly higher spot rates, robust demand and high capacity utilization,” Chief Executive Rolf Habben Jansen said in an earnings statement. He added that geopolitical tensions and operational disruptions continued to put pressure on unit costs. Liner shipping revenue increased to $6.72 billion from $5.36 billion, with segment EBIT rising to $1.05 billion from $219 million. Hapag-Lloyd said the Middle East conflict and weather-related disruptions affected operations and costs, even as transport volumes remained resilient. The smaller Terminal & Infrastructure business also expanded. Quarterly revenue rose to $197 million from $131 million, while EBIT increased to $34 million from $9 million. The company attributed the improvement to investments in terminal capacity and stronger performance at its Latin American terminals. Despite the strong third quarter, group profit for the first nine months remained below the prior-year level at $827 million, compared with $946 million. Nine-month revenue increased to $17.64 billion from $16.05 billion, while EBIT rose to $1.10 billion from $905 million. Hapag-Lloyd cautioned that its upgraded outlook remains subject to considerable uncertainty because of volatile freight rates and persistent geopolitical challenges. Why it matters: The guidance upgrade signals that management expects favorable rate conditions to continue supporting earnings into year-end, but pressure on unit costs and the company’s explicit geopolitical warning temper that confidence. Read more articles by Stuart Chirls here. Read more: US midterm shift adds trade uncertainty as trans-Pacific ocean freight rates stay elevated US postpones ‘million-dollar’ China ship tax until January Rising Q3 transportation costs squeeze manufacturers, reward railroads and reshape trade Cosco profit rockets 81% as ocean freight revenue climbs in Q3 Asia-U.S. West Coast ocean container spot rates up 343% since start of Iran war, says Xeneta The post Hapag-Lloyd profit jumps as stronger freight rates drive guidance upgrade appeared first on FreightWaves.
Hapag-Lloyd reported sharply higher third-quarter earnings on Thursday, a day after raising its full-year outlook as robust spot freight rates fueled better-than-expected fourth-quarter trading.
The German container shipping company posted third-quarter group profit of $999 million, compared with $172 million a year earlier. Earnings before interest, taxes, depreciation and amortization, or EBITDA, nearly doubled to $1.73 billion from $866 million, while earnings before interest and taxes, or EBIT, rose to $1.09 billion from $228 million. Revenue increased to $6.88 billion from $5.46 billion.
Hapag-Lloyd (HLAG.DE), which partners with Maersk (OTC: AMKBY) on Gemini services, now expects 2026 EBITDA of $4.6 billion to $5.0 billion, up from its previous forecast of $3.9 billion to $4.4 billion. It also raised its EBIT outlook to $2.0 billion to $2.4 billion from $1.25 billion to $1.75 billion. The executive board approved the upgrade on Nov. 11, citing continued strength in spot freight rates.
The carrier also said it expects to receive regulatory approvals for its purchase of Zim in the first quarter of 2027.
The third-quarter improvement came primarily from higher freight rates rather than increased cargo volumes. The company’s average freight rate rose to $1,808 per twenty-foot equivalent unit, or TEU, from $1,413 a year earlier. Volumes were broadly unchanged at 3.38 million TEUs, compared with 3.40 million TEUs in the prior-year quarter.
“We delivered a strong third quarter, driven by significantly higher spot rates, robust demand and high capacity utilization,” Chief Executive Rolf Habben Jansen said in an earnings statement. He added that geopolitical tensions and operational disruptions continued to put pressure on unit costs.
Liner shipping revenue increased to $6.72 billion from $5.36 billion, with segment EBIT rising to $1.05 billion from $219 million. Hapag-Lloyd said the Middle East conflict and weather-related disruptions affected operations and costs, even as transport volumes remained resilient.
The smaller Terminal & Infrastructure business also expanded. Quarterly revenue rose to $197 million from $131 million, while EBIT increased to $34 million from $9 million. The company attributed the improvement to investments in terminal capacity and stronger performance at its Latin American terminals.
Despite the strong third quarter, group profit for the first nine months remained below the prior-year level at $827 million, compared with $946 million. Nine-month revenue increased to $17.64 billion from $16.05 billion, while EBIT rose to $1.10 billion from $905 million.
Hapag-Lloyd cautioned that its upgraded outlook remains subject to considerable uncertainty because of volatile freight rates and persistent geopolitical challenges.
Why it matters: The guidance upgrade signals that management expects favorable rate conditions to continue supporting earnings into year-end, but pressure on unit costs and the company’s explicit geopolitical warning temper that confidence.
Read more articles by Stuart Chirls here.
Read more:
US midterm shift adds trade uncertainty as trans-Pacific ocean freight rates stay elevated
US postpones ‘million-dollar’ China ship tax until January
Foreign truck drivers have become one of the most contested subjects in American freight over the past two years, and most of the heat comes from a basic confusion about what a B-1 visa actually authorizes, because the visa lets a Mexican or Canadian driver do a specific and fairly narrow set of things on US soil, and the moment a driver steps outside that lane the same load that was perfectly legal crossing the border turns into an immigration and customs violation that can end a career and drag in the carrier that arranged it. The rules themselves are not new. What is new is that someone is finally enforcing them, and that makes understanding where the line sits more valuable than it has been in a generation. Two Agencies Are Watching The Same Truck The first thing to understand is that a cross-border load is governed by two separate federal systems at once, and clearing one does not clear the other. Customs and Border Protection regulates the goods and the equipment under its cabotage rules, built on 19 CFR 123.14, which spell out what a foreign-plated truck and trailer are allowed to do inside the country. Immigration law, through 8 USC 1101 and the business-visitor provisions at 8 CFR 214.2(b), regulates the person behind the wheel. A movement can satisfy the customs side and still violate the immigration side, because the two bodies of law are asking different questions. One asks whether the freight and the trailer belong in domestic commerce. The other asks whether the driver is allowed to be working at all. That split is the single most misunderstood part of this whole subject. A carrier can look at a load, confirm the trailer is cleared to move, and still be putting a driver in violation of the terms that let him enter the country. Both boxes have to be checked on every leg. What A B-1 Driver Is Actually Allowed To Do The B-1 is a business-visitor classification, and for a cross-border driver it covers movements that are part of the stream of international commerce. In plain terms, that means the load has to be crossing a border, either coming or going. window.googletag = window.googletag || {cmd: []}; googletag.cmd.push(function() { var gptSlot = googletag.defineSlot('/21776187881/FW-Responsive-Main_Content-Slot1', [[300, 100], [320, 50], [728, 90], [468, 60]], 'div-gpt-ad-1709668545404-0').defineSizeMapping(gptSizeMaps.banner1).addService(googletag.pubads()); googletag.pubads().enableSingleRequest(); googletag.pubads().collapseEmptyDivs(); googletag.enableServices(); setInterval(function() { if (!document.hidden) { googletag.pubads().refresh([gptSlot]); } }, 60000); }); googletag.cmd.push(function() { googletag.display('div-gpt-ad-1709668545404-0'); }); A driver domiciled in Mexico or Canada can legally haul a shipment that was loaded in his home country and deliver it to one or more points in the United States. He can enter empty and pick up a US load that is bound for Mexico or Canada and take it across. He can drop the trailer he brought in, run empty with that same trailer, and reload it for the trip back out. He can drop a loaded inbound trailer, bobtail to another US location, and hook a different loaded trailer that is headed for export. He can do the loading and unloading that is a necessary part of moving that international freight. CBP’s published guidance for land carriers addresses this directly, answering in a FAQ that a US carrier may employ a foreign driver only for the international delivery of goods to or from the country, and never for domestic carriage without US work authorization. The common thread in every one of those scenarios is that the freight is genuinely international. The driver is the mechanism that gets an import to its US consignee or gets an export to the border. As long as the movement keeps that character, the B-1 holds up. Where The Line Is, And Why It Is Called Cabotage Cabotage is the word for the thing a B-1 driver cannot do, and it means domestic transportation, point to point, inside the United States by a foreign operator. This is where the violations live, and most of them are not subtle. A Mexican driver who delivers an import to Dallas cannot then accept a Dallas-to-Houston load and run it for pay. That is two US points, origin and destination both domestic, and it is cabotage no matter how efficient it looks on a dispatch board. He cannot add a domestic shipment onto his international load to fill empty space, a practice the enforcement side calls topping up. He cannot sit in the United States soliciting domestic freight. He cannot reposition an empty trailer between two US points if it is not the trailer he entered or will leave with. The governing principle is that purely domestic service, especially when it competes head to head with American operators, falls outside what the visa was ever meant to allow. There is a doctrine underneath all of this, drawn from CBP’s guidance, that ties it together, and it is worth knowing by name. Freight that has come to rest loses its international character. Once an import reaches its destination, gets unloaded, and enters the domestic supply chain, it is no longer international cargo, and it cannot be picked back up and hauled onward under a B-1. The international leg is the thing being authorized. When that leg ends, so does the driver’s authority to carry the goods. Not every piece of this is as settled in the field as it is on paper. Canacar’s Tijuana delegate has said officers disagree over how to handle an empty trailer, with some treating the empty trailer itself as cargo, and that inconsistency at the crossing is part of what drivers have been protesting. Why This Is Not A Work Visa, No Matter How It Gets Used The deeper reason cabotage is prohibited is that the B-1 is explicitly not an employment authorization. The State Department’s own guidance in the Foreign Affairs Manual treats B-1 status as appropriate for commercial activity that does not amount to gainful employment inside the United States, and it is pointed about the difference. The clearest parallel in the manual comes from aviation, where foreign airline crews in B-1 status are barred from working purely domestic flights. The logic carries straight over to trucking. Moving international freight is business travel. Running domestic loads for money is taking a US trucking job, and that requires work authorization the B-1 does not grant. window.googletag = window.googletag || {cmd: []}; googletag.cmd.push(function() { var gptSlot = googletag.defineSlot('/21776187881/fw-responsive-main_content-slot3', [[728, 90], [468, 60], [320, 50], [300, 100]], 'div-gpt-ad-1665767553440-0').defineSizeMapping(gptSizeMaps.banner1).addService(googletag.pubads()); googletag.pubads().enableSingleRequest(); googletag.pubads().collapseEmptyDivs(); googletag.enableServices(); setInterval(function() { if (!document.hidden) { googletag.pubads().refresh([gptSlot]); } }, 60000); }); googletag.cmd.push(function() { googletag.display('div-gpt-ad-1665767553440-0'); }); That distinction is exactly what gets blurred in the field. We reported years ago how outsourced B-1 driver fleets took root around Nuevo Laredo, with some operators paying drivers in cash or by check with no taxes withheld, and running them on domestic loads at a fraction of prevailing rates. The economics are the whole story. A driver earning a Mexican wage running American freight at an American rate undercuts every domiciled carrier on the lane, and for years the enforcement risk was low enough that the math worked. The rules said one thing and the dispatch reality said another. The Enforcement Wave That Changed The Calculus What shifted is that the federal government started treating these rules as live. In April 2025, an executive order titled Enforcing Commonsense Rules of the Road for America’s Truck Drivers directed the Department of Transportation to put teeth back into existing driver-qualification standards. One concrete result landed fast. English-language proficiency, long on the books under 49 CFR 391.11 but effectively unenforced since 2016 guidance blocked inspectors from acting on it, became an out-of-service offense again as of June 25, 2025, when roadside inspectors regained the authority to sideline a driver who cannot communicate adequately in English. The visa revocations escalated in parallel, but they are not all cabotage cases, and that distinction matters. Mexico’s national freight chamber, Canacar, pointing to a figure its president attributed to the American Trucking Associations, said roughly 20,000 Mexican drivers lost their US work visas between April 2025 and April 2026 under the broader tightening of driver requirements that followed the executive order, a wave Mexican outlets have tied as much to the new English-proficiency enforcement as to cabotage. By September, Canacar representatives put the running total above 25,000, a figure the chamber describes as its own estimate assembled from member reports and social media rather than official US government data. The cabotage-specific count is smaller and covers a different window. Transportation Secretary Sean Duffy has said about 3,200 drivers have had visas revoked for cabotage specifically since January, a number that first surfaced from a Canacar official and that the DOT has not formally confirmed as an exact count. What the DOT has confirmed is the mechanism, and it is the part carriers should actually watch. The agency is sharing driver data with CBP, and drivers flagged for possible cabotage are having their visas pulled at the border crossing itself, which is the concrete reason these rules suddenly carry consequences after years of sitting dormant. The pressure has been real enough to trigger protests at the border and formal requests from Mexican industry groups for CBP to spell out exactly what counts as a violation. Enforcement has stayed concentrated on the southern border, and for a stretch the Canadian side saw nothing comparable, with the Private Motor Truck Council of Canada saying through the spring that no Canadian drivers had lost B-1 status or been stopped for cabotage. That is no longer quite true. In August, US Border Patrol arrested a Canadian driver for running a load between Deming and Los Lunas, both in New Mexico, saying the domestic move violated the terms of his nonimmigrant status and that he faced prosecution and deportation. The weight of enforcement still sits on the Mexico border, but the arrest is a reminder that the rule reads the same way on both. window.googletag = window.googletag || {cmd: []}; googletag.cmd.push(function() { var gptSlot = googletag.defineSlot('/21776187881/fw-responsive-main_content-slot4', [[300, 100], [320, 50], [728, 90], [468, 60]], 'div-gpt-ad-1709668086344-0').defineSizeMapping(gptSizeMaps.banner1).addService(googletag.pubads()); googletag.pubads().enableSingleRequest(); googletag.pubads().collapseEmptyDivs(); googletag.enableServices(); setInterval(function() { if (!document.hidden) { googletag.pubads().refresh([gptSlot]); } }, 60000); }); googletag.cmd.push(function() { googletag.display('div-gpt-ad-1709668086344-0'); }); What This Means If You Are A US Carrier Or Broker For domiciled carriers, especially the small ones running border and Sun Belt lanes, none of this is news. They have spent years saying that B-1 operators were underpricing them with cheaper labor and quietly running domestic freight they had no business touching, and for most of those years the complaints went nowhere. One South Texas carrier owner, who spoke anonymously in 2021 for fear of retaliation, said many carriers had moved into the practice over the previous few years, which is its own signal of how the compliant end of the market has felt. Reading the current mood as part relief and part disbelief is a judgment call, but both are easy to understand, because enforcement has landed in bursts rather than as a steady program. It started with the April 2025 order and the June 2025 inspection changes, moved to Border Patrol pulling visas over cabotage at the border by late 2025, and built into the wave of revocations drawn from shared DOT and CBP data in mid-2026. The larger carriers are reading it as a market event, not a morality tale. At a Wells Fargo conference in June 2025, J.B. Hunt COO Nick Hobbs and then-Schneider CEO Mark Rourke tied the cheap rates that dragged out the freight downturn in part to this kind of capacity, and cast tighter cabotage and English-proficiency enforcement as one of the last things that could pull supply and demand back toward balance, with the Southwest and Southeast standing to gain the most. The logic is simple whether or not the precise numbers hold. Take a slug of underpriced trucks off the border lanes and the floor under everyone still running them legally comes up. The criminal exposure is real, but it is not what most carriers feel day to day. Prosecutions are rare, which is exactly why the 2019 Nogales case, where two trucking operators pleaded guilty to unlawfully employing workers without US work authorization and each forfeited two trucks and paid a 20,000 dollar fine, still gets cited years later. What carriers actually live with is the competitive side, the operator on the next load who can always go lower. The difference now is that the low number comes with a failure point, because a driver turned back at the crossing does not deliver, and a lane built on him can go dark overnight. For brokers, the honest stance has less to do with compliance virtue than with reliability. The cheapest truck on a cross-border lane has often been the one leaning on all of this, and it is now the one most likely to get turned back, lose its driver’s visa in the middle of a contract, or move your freight on a leg that should never have happened. A rate that looks like a steal is worth a second look at who is really pulling it, not because a rulebook says so, but because a stranded load and a shipper asking what happened costs far more than the few cents it saved. Why It Matters For a US carrier or broker, this has stopped being a theoretical compliance point and become an active enforcement risk that attaches to real freight and real money. The rules that define what a B-1 driver can haul have not changed in decades, but the cost of ignoring them has, and it falls hardest on the driver who loses the visa and the carrier that dispatched the illegal leg, while the broker or shipper that leaned on that cheap truck is left holding the service risk when a load suddenly cannot move. The corridors most affected are the cross-border lanes where a cheap rate has quietly depended on domestic running that was never allowed, and as that math stops working, some of that capacity comes off the board and some of it shifts to carriers that were playing it straight the whole time. The operators who come out ahead are the ones who know exactly where the international movement ends and domestic commerce begins, because that line is now being drawn by inspectors and customs officers rather than left to the dispatch desk. window.googletag = window.googletag || {cmd: []}; googletag.cmd.push(function() { var gptSlot = googletag.defineSlot('/21776187881/fw-responsive-main_content-slot5', [[728, 90], [468, 60], [320, 50], [300, 100]], 'div-gpt-ad-1665767778941-0').defineSizeMapping(gptSizeMaps.banner1).addService(googletag.pubads()); googletag.pubads().enableSingleRequest(); googletag.pubads().collapseEmptyDivs(); googletag.enableServices(); setInterval(function() { if (!document.hidden) { googletag.pubads().refresh([gptSlot]); } }, 60000); }); googletag.cmd.push(function() { googletag.display('div-gpt-ad-1665767778941-0'); }); The post What The B-1 Visa Lets A Foreign Truck Driver Legally Do In The United States appeared first on FreightWaves.
Mexico’s heavy-duty truck manufacturing industry posted a sharp rebound in October, with production surging nearly 130% and exports jumping 159% compared with a year earlier, according to new government data. Mexican manufacturers produced 16,375 heavy-duty vehicles during October, a 129.6% increase from 7,131 units in October 2025, according to the National Institute of Statistics and Geography (INEGI). Exports climbed 158.9% to 13,518 vehicles, compared with 5,221 during the same month last year. The gains highlight the recovery in Mexico’s export-oriented truck manufacturing industry, which relies heavily on the U.S. as its largest customer. However, the National Association of Bus, Truck and Tractor-Trailer Producers (ANPACT) warned that Mexico’s domestic heavy-duty vehicle market continues to struggle with weak demand, aging fleets and competition from imported used trucks. “The results for October show mixed signals for the industry, particularly as the domestic market faces significant challenges,” Rogelio Arzate, ANPACT’s executive president, said in a news release. “Although retail sales increased during the month, the year-to-date total remains about 16% below the previous year.” Mexico’s heavy-duty truck industry rebounds October’s manufacturing gains helped lift year-to-date production to 133,496 heavy-duty vehicles, an increase of 17.8% compared with 113,299 during the first 10 months of 2025. Exports totaled 111,912 vehicles from January through October, up 20.3% from 93,037 a year earlier. The U.S. remained the dominant destination for Mexico-made heavy-duty vehicles, accounting for 104,064 units, or 93% of total exports through October, according to INEGI. During ANPACT’s monthly news conference, Arzate said exports to the United States rose 173.5% year over year in October, reaching 13,097 vehicles. Shipments to the U.S. were up 18.6% through the first 10 months of 2026. Canada was Mexico’s second-largest export destination during the January-October period, receiving 4,493 vehicles, followed by Colombia with 2,138. Freightliner accounted for approximately 64% of Mexico’s heavy-duty vehicle production and 71% of exports in October. Together, Freightliner, International and Kenworth represented approximately 97% of production and virtually all exports. Mexico heavy-duty truck production and exports — October 2026 Domestic truck demand remains weak Despite the manufacturing rebound, Mexico’s domestic heavy-duty vehicle market continues to face challenges. Retail sales increased 5.1% in October to 3,162 vehicles, compared with 3,009 in October 2025. However, retail sales for the first 10 months of 2026 totaled 28,479 vehicles, down 15.4% from 33,653 during the same period last year. Wholesale sales showed stronger improvement, rising 26.8% in October to 3,301 vehicles. Year-to-date wholesale sales reached 26,912 units, an increase of 10.5%. The tractor-trailer segment was among the strongest performers. Wholesale sales of fifth-wheel tractors climbed 48.1% in October to 1,438 units, compared with 971 a year earlier. Cristina Vázquez, economic studies coordinator for the Mexican Automotive Distributors Association (AMDA), said during the news conference that October represented only the second month of positive year-over-year retail sales growth in 2026. Vázquez also pointed to uncertainty surrounding economic conditions and North American trade policies as factors discouraging fleet investment. She said some companies were postponing vehicle purchases until they had greater clarity about future operating and investment conditions. ANPACT warns used-truck imports threaten fleet renewal ANPACT said competition from imported used heavy-duty vehicles remains one of the biggest obstacles to improving Mexico’s domestic truck market. During the news conference, Arzate said that for every 100 new heavy-duty vehicles sold in Mexico during the January-September period, approximately 51.4 used vehicles were imported from the United States. The association argues that the influx of older imported trucks distorts pricing, discourages purchases of new equipment and undermines efforts to modernize Mexico’s commercial vehicle fleet. ANPACT also raised concerns about increasing imports of buses manufactured in countries without free trade agreements with Mexico. The association called for stronger vehicle scrappage programs, improved financing options and policies that would encourage smaller trucking companies to replace aging equipment. Why it matters: Mexico is a critical manufacturing hub for North America’s trucking industry, and its production rebound highlights the importance of U.S. demand even as Mexican carriers struggle to replace aging fleets. The post Mexico truck exports soar 159% as production jumps 130% in October appeared first on FreightWaves.
The Cybertruck is heading to that shiny cyber-dumpster in the sky, leaving the folks who built online identities around Elon Musk's polarizing pickup feeling bereft. Usually, Musk's fanbase treads lightly around their idol's mercurial decisions. This time, however, the truck's demise has sparked rare backlash within the Tesla community - aimed squarely at the guy who signed its death warrant. Troy Meekhof, who posts on numerous social platforms under the moniker "The Cybertruck Guy," has been vocal about his disappointment in Musk's decision to wind down Cybertruck production by the end of summer 2027. (The original plan was to start windin … Read the full story at The Verge.
