HMM Reports Record Q3 Operating Profit of 2.27 Trillion Won Amid High Freight Rates and Shipping Market Boom

Sales of 4.0164 Trillion KRW, Up 133.7% YoY
4th Quarter Efforts to Secure Stable Cargo on European Routes

[Image source=Yonhap News]

[Asia Economy Reporter Dongwoo Lee] HMM recorded its highest quarterly performance ever in the third quarter of this year, driven by increased cargo volume and rising shipping rates amid the global shipping market boom.

HMM announced on the 10th that its consolidated operating profit for the third quarter of this year was tentatively estimated at 2.2708 trillion KRW, a 719.6% increase compared to the same period last year. During the same period, sales reached 4.0164 trillion KRW, up 133.7% year-on-year, and net profit surged by 9248.8% to 2.2998 trillion KRW.

Accumulated sales until the third quarter of this year reached 9.3511 trillion KRW, and operating profit was 4.679 trillion KRW, achieving the highest performance ever. Net profit amounted to 2.6644 trillion KRW.

HMM analyzed that the increase in cargo volume led to a roughly 4% rise in cumulative container loading compared to the previous year, and the rise in freight rates across all routes, including Asia-US routes, Europe, and other regions, drove the record-breaking performance.

Considering that the fourth quarter is a seasonal low period for the container sector, congestion at US ports continues, and irregular supply of vessel space and containers is expected, freight rates on all routes, including Asia-US routes, are forecasted to remain stable for the time being.

It was also added that temporary demand decreases and rebounds may repeat due to production disruptions caused by China's power shortages and inflation concerns.

However, uncertainties in the global trade environment remain as risk factors, including US-China conflicts and the resurgence of COVID-19 due to the With-Corona policy.

HMM plans to continue efforts to secure stable cargo by deploying a total of 20 vessels on European routes, including twelve 24,000 TEU ultra-large vessels and eight 16,000 TEU vessels.

Going forward, HMM is determined to refine its business plans by increasing operational efficiency, reducing costs, and promoting stable cargo acquisition to achieve competitiveness at the level of global shipping companies.

HMM stated, "We will focus on strengthening internal capabilities through management innovation such as providing differentiated customer-centered shipping services and improving IT systems for business normalization, as well as improving sales structure."

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