by Mattia Micheli, SeaNewsEditor
The company’s roots trace back to the mid-19th century when the founding companies – Hamburg-Amerikanische Packetfahrt-Actien-Gesellschaft (Hapag) and North German Lloyd – put their first ships to sea carrying general cargo and passengers to New York. A merger of two former rivals, Hapag and Norddeutscher Lloyd, in 1970 established the company known as Hapag-Lloyd AG today.
Mid-19th Century
On May 27, 1847, the Hamburg-Amerikanische Packetfahrt-Actien-Gesellschaft (HAPAG) was founded in the Hamburg Stock Exchange's conference hall.
Merchants and shipowners, primarily interested in the emigration business, established reliable liner services between Hamburg and North America. Adolph Godeffroy was chosen as the first director, and the company's inaugural route was established between Hamburg and New York using sailing ships.
In 1856, HAPAG launched its first steam-powered ship, the “Borussia,” followed by its sister ship, the “Hammonia.” These ships marked the company's transition to steam power and were immediately employed for transatlantic routes, carrying mail between Europe and the United States.
Inspired by HAPAG's success, German merchant Hermann Henrich Meyer and Eduard Crüsemann established Norddeutscher Lloyd (NDL) in Bremen in 1857.
NDL aimed to create a modern transatlantic line equipped with steamships for transport, and the company’s first steamship, the “Bremen,” sailed from Bremen on July 12, 1858.
The Era of Ballin
Albert Ballin, born in Hamburg in 1857, was pivotal in maritime history. Ballin inherited a small business helping immigrants reach America. His exceptional skills quickly made him stand out, and by 1886, at 29, he became the director of HAPAG, supported by Carl Laeisz, a key member of HAPAG’s board.
Three years after taking over the helm, Ballin achieved his first major success when HAPAG’s express steamship, the “Augusta Victoria,” set a transatlantic record, traveling from Southampton to New York in just seven days.
In 1891, Ballin did something unprecedented by relocating the “Augusta Victoria” to the Mediterranean during winter, offering luxurious "cruises." These excursions, substantially vacations on luxury floating hotels, were a resounding success, giving birth to the modern cruise concept.
In 1912, HAPAG launched the "Imperator," the largest ship in the world at the time. At 276 meters long, it could accommodate around 4,200 passengers and 1,500 crew members. This marked the pinnacle of Ballin’s career, as he led HAPAG to become an industrial superpower.
The end of World War I brought inevitable defeat for Germany and financial collapse for HAPAG. Many of its ships were requisitioned or stranded, and Ballin, facing the ruin of his life's work, committed suicide on November 9, 1918. His death marked the end of an era at HAPAG.
Post-World War Recovery and Merger
After World War I, the German shipbuilding industry slowly began to recover throughout the 1920s. By 1924, HAPAG returned to pre-war levels, and NDL modernised its fleet. Significant milestones included NDL’s ship “Bremen” winning the “Blue Riband” for the fastest transatlantic crossing in 1929.
The 1929 Wall Street crisis nearly brought both companies to collapse.
Post-World War II restrictions on German companies gradually lifted, allowing HAPAG and NDL to resume operations and cooperate through informal agreements. By 1955, both companies had rebuilt solid cargo transport lines, extending from Asia to New York.
The birth of massive air passenger transportation signed the end of the transatlantic routes’ business. By 1963, both companies' focus had shifted significantly towards cargo transport. Weekly cargo transport lines to and from the Far East were launched, marking the end of the transatlantic passenger travel business.
In 1966, HAPAG and NDL began using containers for transport, with the “Weser Express” launching from Bremen in 1968 as the first fully containerised line between the USA and Europe operated jointly by both companies.
On September 1, 1970, after 113 years of rivalry and cooperation, HAPAG and NDL merged to form Hapag-Lloyd AG. This merger combined their fleets, creating a single company based in Hamburg and Bremen.
During the oil crisis, which began in 1973, Hapag-Lloyd faced immense pressure from rising fuel costs. Ships on the “Hamburg-Express” route operated with only one turbine to reduce fuel consumption until the crisis subsided in 1985.
1998 TUI acquired a majority stake in Hapag-Lloyd, expanding it into a leading container shipping company. Despite financial challenges, a Hamburg consortium acquired a majority stake in 2008, with TUI retaining a minority stake. By 2012, Hamburg became the largest shareholder.
In 2005, Hapag-Lloyd acquired CP Ships, making it the fifth-largest fleet in the world. In 2014, the company merged with the Chilean shipping company CSAV and a further significant expansion occurred in 2017 with the merger of United Arab Shipping Company (UASC), expanding the fleet to 225 ships with a capacity of 1.6 million TEU.
Recent Developments
The COVID-19 pandemic severely impacted global trade in 2020. However, recovery in the subsequent years was driven by strong consumer demand in Europe and the United States, bringing ships back to ports worldwide. Despite ongoing challenges, the commercial situation gradually improved in 2021.
In 2023, Hapag-Lloyd launched the "Berlin Express," a container ship with a capacity of 23,664 TEU, making it the largest container ship ever to sail under the German flag.
In 2016, Hapag-Lloyd, ONE, HMM, and Yang Ming established the global shipping network “THE Alliance.” After seven years of operation, Hapag-Lloyd is set to leave this alliance and commence a new cooperation with Maersk, named “The Gemini Cooperation,” in February 2025.
