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HMM profits from container spot rate surge

South Korean shipping line HMM reported an 88% jump in net profits in the first half of 2024 driven by the impact of the Red Sea crisis on rates.

Marcus Hand, Editor

August 13, 2024

1 Min Read
[Image] HMM TACOMA
Photo: HMM

For H1 2024 HMM disclosed a net profit of KRW1.15 trillion ($838.4 million) compared to KRW610 billion in the first half of the previous year. Revenues were up 18.6% in the first half of the year at KRW 4.99 trillion.

The shipping company highlighted the sharp rise in the Shanghai Containerized Freight Index (SCFI) increasing from 976 points in H1 2023 to 2,319 points in H1 2024.

“A boost in freight rates and the strengthening of profitability-oriented operations resulted in a growth in revenue and profits,” HMM said.

The sharp increase in HMM’s profitability points to a relatively high exposure to the spot market relative to cargo on long term contract compared to many of its competitors. The company highlighted an H1 operating margin of 21.1%.

Looking ahead HMM commented, “Considerable uncertainties as a result of geopolitical risks and global trade tensions will probably make a sudden shift in the global shipping market.” A boost in freight rates and the strengthening of profitability-oriented operations resulted in a growth in revenue and profits. 

Much as the Red Sea Crisis has unexpectedly boosted container shipping and end to attacks by the Houthis on commercial vessels in the Red Sea and the Gulf of Aden could quickly reverse this impact.

Related:Maersk remains positive as box demand outlook cools

HMM has been adjusting its network to meet changes demand and in common with many of its competitors launching new routes to connecting to Mexico. It is also investing in newbuildings and secondhand vessels.

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About the Author

Marcus Hand

Editor

Marcus Hand is the editor of Seatrade Maritime News and a dedicated maritime journalist with over two decades of experience covering the shipping industry in Asia.

Marcus is also an experienced industry commentator and has chaired many conferences and round tables. Before joining Seatrade at the beginning of 2010, Marcus worked for the shipping industry journal Lloyd's List for a decade and before that the Singapore Business Times covering shipping and aviation.

In November 2022, Marcus was announced as a member of the Board of Advisors to the Singapore Journal of Maritime Talent and Technology (SJMTT) to help bring together thought leadership around the key areas of talent and technology.

Marcus is the founder of the Seatrade Maritime Podcast that delivers commentary, opinions and conversations on shipping's most important topics.

Conferences & Webinars

Marcus Hand regularly moderates at international maritime events. Below you’ll find a list of selected past conferences and webinars.

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