HMM expects trans-Pacific container shipping prices to remain high in the short term

The Korean shipping company rebounded KRW 28.1 billion (USD 23 million) in profits in Q2 2020 compared to KRW 200.7 billion in the same period in 2019. Revenue fell 1.6 percent in Q2 2020 at KRW 1.38 million compared to the same period last year.

Despite the impact on volumes from Covid-19, container carriers have succeeded in managing capacity through canceling sailings to maintain rates. Production fell 20.9% to 1.78 million TEUs in the first half of 2020, compared with 2.25 million TEUs in the same period in 2019.

The HMM shipping line said earnings were based on membership of THE Alliance with Hapag-Lloyd, Ocean Network Express and Yang Ming, and the deployment of the new construction of 24,000 TEU, the largest container ships in operation today. "Total revenue and container handling volumes have been impacted by the Covid-19 pandemic", the company said.

Going forward, HMM said it expects trans-Pacific freight rates to remain high in the short term, Asia-Nordic trade is fairly balanced in terms of supply and demand, and intra-Asia trade will remain many challenges.

“The profitability in the main East-West trade lanes contributed to enhanced business performance. However, market outlook remains uncertain as coronavirus can re-emerge for the upcoming winter season and growing geopolitical tensions between US and China are definitely one of the most important variables", HMM said.

Phaata (Adapted from Seatrade Maritime)

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