According to a report from Seatrade Maritime, HMM disclosed a net profit of KRW1.15 trillion ($838.4 million) for the first half of 2024, a significant increase from KRW610 billion in H1 2023. The company’s revenues surged by 18.6%, driven by a sharp rise in the Shanghai Containerized Freight Index (SCFI) and profitability-focused operations.
Freight Rates Boost Revenue and Profits
HMM attributed its strong financial performance to a significant increase in freight rates, as reflected in the SCFI, which jumped from 976 points in H1 2023 to 2,319 points in H1 2024. The rise, combined with HMM’s focus on profitability-oriented operations, led to a notable growth in both revenue and profits, with an operating margin of 21.1% in the first half.
Strategic Adjustments Amid Market Uncertainty
Looking ahead, HMM acknowledged the considerable uncertainties in the global shipping market due to geopolitical risks and global trade tensions. The company has been actively adjusting its network to meet changing demand, including launching new routes connecting to Mexico and investing in both new buildings and secondhand vessels.
Impact of Geopolitical Developments
HMM also noted that geopolitical developments, such as the Red Sea Crisis, have had unexpected effects on container shipping. The company cautioned that an end to attacks by the Houthis on commercial vessels in the Red Sea and the Gulf of Aden could quickly reverse current favorable market conditions.
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Source: BetterSea
