Seoul-listed Hanjin Shipping posted first quarter net loss of KRW34.7bn ($31.5m), significantly narrowing from a loss of KRW338.4bn in the corresponding period of 2012.
Revenue improved to KRW2.5trn compared to KRW2.26trn a year ago.
“The total sales recorded KRW2.5trn grew 10.2% year-on-year due to the container transport volume increase despite the first quarter being off-season. In terms of profitability, operating loss was decreased considerably by 72.4% year-on-year to KRW59.9bn because of container freight rate recovery by 7.9% year-on-year,” Hanjin Shipping said.
Looking ahead into the second quarter, Hanjin Shipping believed that the imbalance between supply and demand in the container sector will gradually be eased, and profitability is expected to improve through additional rate increase with the coming of peak season as well as stabilisation of oil prices.
The bulk sector is projected to remain weak due to continuous pressure from vessel supply growth and delayed recovery of the Chinese economy, according to Hanjin Shipping.
“However consistent demand for transporting South America's crops and rising demand for coal to power the approaching summer's electricity, etc, are expected to have positive effects on the market,” it said.
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