HMM's Operating Profit Falls 58% to 1.46 Trillion Won on Freight Rate Decline
Solid Profitability Amid Weak Market Conditions
HMM's operating profit last year was 1.4612 trillion won, down 58.4% from the previous year. This was analyzed as being due to a decline in freight rates on all routes amid a weak shipping market.
On the 11th, after holding a regular board meeting, HMM announced its provisional results for last year. Revenue was 10.8914 trillion won, down 6.9%, and net profit was 1.8787 trillion won, down 50.3%. The operating margin was 13.4%.
HMM said, "Freight rates declined on all routes due to oversupply of container ships and a contraction in trade caused by the U.S. protectionist tariff policy. The Shanghai Containerized Freight Index (SCFI) averaged 1,581 points in 2025, down 37% from the 2024 average of 2,506 points."
In particular, freight rates on its main routes fell sharply: the U.S. West Coast (-49%), the U.S. East Coast (-42%), and Europe (-49%).
In the fourth quarter of last year, despite a weak shipping market and seasonal off-peak conditions, HMM posted operating profit that increased 6.9% quarter-on-quarter and an operating margin of 11.7%. It improved profitability by optimizing route operation efficiency, attracting high-yield cargo, and developing new business segments.
This year, although supply is expected to increase significantly due to the mass delivery of newly built container ships, major institutions forecast demand growth of only 2.1%, raising concerns that the supply-demand imbalance will worsen. As trade disputes intensify and uncertainty over environmental regulations increases, shipping companies are expected to further adjust and redeploy their services.
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An HMM official said, "In the container segment, we will expand our market share by expanding our hub-and-spoke-based network and strengthening eco-friendly services, while improving our cost structure by establishing an optimal feeder operation system. In the bulk segment, we will pursue stable growth by identifying new business opportunities such as transporting mineral resources related to the artificial intelligence (AI) industry and resuming the domestic dedicated vessel business."
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