HMM Reports Record Operating Profit of 2.4 Trillion Won in First Half Amid High Freight Rates

[Asia Economy Reporter Dongwoo Lee] HMM announced on the 13th that its consolidated operating profit for the second quarter of this year reached 1.3889 trillion KRW, marking a 901% increase compared to the same period last year.

During the same period, sales rose 111.3% year-on-year to 2.9067 trillion KRW, and net profit increased by 648.0% to 210.5 billion KRW.

For the first half of this year, total sales amounted to 5.3347 trillion KRW, up 98.4% from the previous year, and operating profit soared 1661.6% to 2.4082 trillion KRW. Net profit turned positive to 364.6 billion KRW compared to the same period last year.

HMM explained that container loading volume increased by approximately 8.4% year-on-year due to growth in cargo volume, and the market conditions significantly improved as freight rates rose on the Asia-Americas route as well as on all routes including Europe and other regions.

Both the container and bulk sectors achieved operating profits thanks to cost structure improvements such as route rationalization and cargo cost reduction, along with the effect of rising freight rates. The company stated, "We will continuously strive to secure top-tier shippers, enhance operational efficiency, and refine cost reduction measures to build competitiveness at the level of global shipping companies."

The container sector expects the strong market conditions to continue due to persistent uncertainties in the US economy, the resurgence of COVID-19 variants, and ongoing shortages of vessel space and equipment caused by port congestion.

Efforts to secure additional cargo will continue in the third quarter, the traditional peak season, supported by the stable cargo secured by eight ultra-large 16,000 TEU container ships deployed in the first half of the year.

The bulk sector forecasts overall strong market conditions due to delayed recovery from the COVID-19 crisis and expectations for peak winter season demand. HMM plans to focus on strengthening competitiveness through management innovation such as providing customer-centric differentiated shipping services, improving IT systems, enhancing internal capabilities, and improving sales structure.

HMM said, "We are continuously deploying temporary vessels using all available means and, as a leading national shipping company, we will do our best to ensure that the cargo of export companies is transported safely and without disruption."

This content was produced with the assistance of AI translation services.