Net loss during the third quarter for Hanjin Shipping was recorded at KRW317.6bn ($297.26m), widening from a loss of KRW47.3bn in the same period of last year.
The South Korea-based shipping firm said the net loss was due mainly to foreign currency exchange loss of KRW174.3bn from the appreciation of the Korean won against the US dollar.
Revenue for the period dipped 7.2% year-on-year to KRW2.71trn.
Hanjin Shipping's container division posted an operating loss of KRW47.8bn chiefly because of oversupply in main service routes during the peak season and delayed freight rate recovery even though container transport volume in transpacific and Asia-Europe trades rose by 4.3% and 6.4% year-on-year, respectively.
“Container shipping market is still facing difficulties mainly due to oversupply situation. However, with holiday season approaching and continuous eco-steaming, vessel idling, service rationalisation and rate restoration by global carriers, container freight rates are expected to stabilise gradually,” the company said.
Its bulk division achieved an operating profit of KRW8.9bn, soaring 394.4% year-on-year as rates jumped by 15.6% quarter-on-quarter and 11% year-on-year.
“As for bulk business, cargo volume is likely to recover in the fourth quarter with growing demand for crops in the US and Russia as well as demand for heating and stockpiling in the winter season,” Hanjin Shipping said.
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