That was the message from the German container shipper Thursday (March 14).

It said a global vessel oversupply and the crisis in the Red Sea would force it to cut expenses this year, and could reduce sailings.

The company said it would save on the procurement side and adjust services.

Hapag-Lloyd posted a net profit of almost $3.3 billion for 2023 - down 83% on a year earlier.

Prices to ship freight tumbled over the course of the year.

The firm is also among a number of commercial shippers that have been skipping the Suez Canal.

That after Yemen-based Houthi militants began attacking ships.

Shippers have rerouted via the Cape of Good Hope, which adds two to three weeks to voyages.

German shipowners' group VDR has said the diversions are costing operators millions.

Hapag-Lloyd says pre-tax earning will be down again this year.

Shares in the firm fell as much as 2.5% after the update.