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Hanjin Shipping returns to profit

Hanjin Shipping returns to profit
Hanjin Shipping has returned to the black in the first half with a profit of KRW127.2bn ($109.87m), erasing the loss of KRW424.2bn in the year-ago period.

The profit came despite a 2.9% year-on-year dip in first half revenue to KRW4.13trn, as operating profit was boosted as a result of continuous cost saving efforts.

Hanjin Shipping’s container liner division saw the operating project soared to KRW226.5bn in the first half from just KRW1.7bn in the previous corresponding period, driven by rationalised service lanes and lower bunker costs.

The bulk business division, however, continued to record operating loss of KRW51.1bn compared to the loss of KRW62bn a year ago due mainly to China’s reduced import of coal and other seasonal effects.

In view of the second half of the year, Hanjin Shipping said the transpacific trade is likely to grow in terms of both freight rate and cargo volume as the annual peak season approaches along with the potential recovery of the US market.

“As for Asia-Europe trade, oversupply situation is expected to gradually improve hence freight rate level will also stabilise,” it added.