Shipping line HMM reported net profit of 1.01 trillion KRW for 2023, down 90% from 10.12 trillion KRW the previous year. The company managed to maintain profitability in the fourth quarter of 2023 with a net profit of KRW 301 billion compared to KRW 1.44 trillion in the same period last year.

The Korean shipping line remains profitable despite slowing demand and the addition of new container ships to the market, which is said to have led to market normalization with the Shanghai Containerized Freight Index (SCFI) decreases by an average of 71% in 2023 compared to 2022.

However, spot container freight rates have more than doubled this year as disruption in the Red Sea sparked attacks by Houthi rebels 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 reported last week on the collapse of South Korean government entities selling a majority stake in the shipping company for $4.9 billion to Harim Group.

Commenting on the failed acquisition, 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 container fleet capacity of over 1 million TEU this year with the receipt of 12 new ships with a capacity of 13,000 TEU.

 

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Source: Phaata.com (According to SeatradeMaritime) 

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