The German shipping giant says rerouting vessels and higher fuel, insurance, storage and inland transport costs hit its second-quarter earnings.
HAMBURG, GERMANY — WEB DESK: German shipping giant Hapag-Lloyd says the closure of the Strait of Hormuz amid the ongoing Middle East conflict cost the company around $600 million during the second quarter of 2026.
The company reported on Thursday that its net profit fell sharply to $83 million between April and June, compared with $306 million during the same period last year.
Rerouted ships drive up costs
Hapag-Lloyd said the conflict in the Middle East and the closure of the Strait of Hormuz forced vessels to alter their routes, increasing operating and logistics costs.
The company faced additional expenses across several areas, including fuel, insurance, storage, vessel rerouting and inland transportation.
The disruption has added financial pressure to shipping companies that rely on established maritime routes to move containers and other goods between major markets.
Operating profit also declines
Hapag-Lloyd’s liner shipping business recorded an operating profit of $153 million during the second quarter, down from $167 million in the same quarter of 2025.
The decline highlights the financial impact of higher operating costs and disruption to shipping routes.
The company said the additional costs associated with the Middle East conflict and the Hormuz closure weighed significantly on its performance.
Strong demand offsets some losses
Despite the pressure caused by the disruption, Hapag-Lloyd said strong exports from Asia and improved shipping demand in the United States helped offset part of the financial impact.
The continued strength of international container demand provided some support for the company’s overall performance despite higher costs associated with longer and more complicated shipping routes.
Hormuz disruption affects global shipping
The Strait of Hormuz is one of the world’s most strategically important maritime corridors, connecting the Persian Gulf with the Gulf of Oman.
The waterway is particularly important for global energy supplies, with large volumes of oil and other energy products passing through the region.
A prolonged closure or disruption can have consequences well beyond the Middle East. Shipping companies may be forced to take longer routes, increasing fuel consumption, insurance premiums, crew and vessel costs, storage requirements and inland transportation expenses.
Global supply chains face added pressure
Hapag-Lloyd’s latest financial figures demonstrate how geopolitical tensions can quickly translate into higher costs for international shipping companies.
Longer routes can also increase delivery times, creating additional pressure on importers, exporters and manufacturers that depend on predictable global supply chains.
The financial impact reported by Hapag-Lloyd therefore illustrates that disruption around Hormuz is not limited to regional trade. Its effects can spread across international shipping networks, energy markets and the wider global economy.
