GDANSK (Reuters) -Germany-based international shipping company Hapag-Lloyd ( HLAGF ) said on Thursday that it is raising its full-year earnings guidance, citing stronger-than-expected demand and improved freight rates.

Despite increased expenses from the diversion of vessels around the Cape of Good Hope, Hapag-Lloyd ( HLAGF ) says it now expects earnings before interest, taxes, depreciation, and amortization (EBITDA) for 2024 to be between $4.6 billion and $5 billion, previously expecting between $3.5 and $4.6 billion.

However, against the backdrop of very volatile freight rates and major geopolitical challenges, the forecast is subject to a high degree of uncertainty, added Hapag-Lloyd ( HLAGF ).

Attacks in the Red Sea by Iran-aligned Houthi militants have since late last year forced shipping companies to reroute traffic away from the Suez Canal and instead sail around Africa, a longer journey that ties up more capacity.

The company, which specializes in global container liner shipping, also announced its preliminary nine-month figures, saying it achieved an EBITDA of about $3.6 billion, down from $4.5 billion in the same period last year.

Final results are due to be published on Nov. 14.