HMM reports a more than 90% drop in profits in the first half of the year

For the first six months of 2023, the major South Korean shipping company reported a net profit of $460 million, down 90 percent year-on-year, and operating profit of $360 million, a decrease of 92%. compared to the first half of 2022 and revenue was $3.2 billion, down 58% year-on-year.

A representative of HMM said: “The container shipping industry has been experiencing an overcapacity, mainly led by the influx of new container ships ordered during the pandemic and supply chain normalisation at major ports and inland regions", "the cascading effect of larger vessels from the main east-west trades to smaller lanes intensified the imbalance between supply and demand."

As a result, freight rates in most of the key shipping routes came under downward pressure in the first half of the year, according to the company statement.

The HMM representative continued, “In the case of Transpacific trade, we expect to see a gradual recovery in cargo volumes as a rebound in inventory restocking and a soft landing for the US economy are likely to come to fruition, with no drastic changes in the supply side in the near term."

The Seoul-based shipping company, the acquisition that has become a big story for the shipping industry in recent months, said it will continue to make service adjustments such as introducing new FIM routes (Asia Far East, India and Mediterranean Sea), cost-cutting and operational efficiency-enhancing measures to deal with market uncertainty.

Read more:

• Ocean freight: Good news and bad news
• Forecast of the container shipping market in the second half of 2023

Source: Phaata.com (According to ContainerNews)

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