HMM reported a net profit of KRW1.01 trillion for 2023 a 90% drop compared to KRW10.12 trillion in the previous year. The company managed to remain profitable in Q4 2023 with a net profit of KRW301 billion compared to KRW1.44 trillion in the same period in the previous year.
The South Korean company remained profitable despite a slowdown in demand and influx in new container tonnage, which it said had led to a normalisation of the market with Shanghai Containerized Freight Index (SCFI) down 71% on average in 2023 compared to 2022.
Spot container freight rates have however more than doubled this year on the back of disruption in the Red Sea caused Houthi rebel attacks from Yemen.
Looking ahead HMM commented, “Disruptions in the Red Sea region are still underway, and a severe drought in the Panama Canal restricted daily vessel transits. Both issues have led to widespread uncertainty and market volatility.”
HMM was in the news last week over the collapse of a sale by South Korean government institutions of a majority stake in the shipping company for $4.9 billion to Harim Group.
Commenting on the failed sale HMM said: “Regardless of the recent sale process, HMM makes great efforts to enhance its business capability for the swift response to the ever-changing market environment and will continue to secure a solid foundation for future growth.”
HMM will reach a containership fleet capacity of over 1 million teu this year with the delivery of twelve 13,000 teu boxship newbuildings.
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