HMM reported a net profit of KRW3.78 trillion ($2.60 billion) for 2024 up 290% compared to KRW970 billion in 2023. Revenues were up 39% year-on-year at KRW11.7 trillion in 2024, reports Container News.
HMM nearly quadruples net profit in 2024
The South Korean company reported an operating margin of 30% which it said showed its competitiveness in the global shipping market.
HMM said the much-improved result compared to 2023 was driven by fleet expansion with twelve 13,000 teu newbuildings and enhanced Transpacific services combined with benefiting from the Red Sea crisis and rise trade demand from the US and Canada.
The Red Sea Crisis helped substantially increased freight rates by essentially reversing overcapacity of container ship tonnage which was soaked up by longer transits via the Cape of Good Hope on the Asia – Europe/Med trade.
Following the recent ceasefire in Gaza the Houthi have stopped targeting international shipping in the Red Sea excluding Israeli owned and flagged, should the ceasefire hold container lines are expected to return to Red Sea and Suez Canal transits by mid-year.
Looking ahead HMM commented: “Despite strong financial performance, uncertainties persist due to US tariffs, supply chain shifts, and overcapacity, which may pressure freight rates.”
HMM noted the Shanghai Containerized Freight Index (SCFI) averaged 2,506 points in 2024, up 149% from the 2023 average of 1,005 points. However, has weakened recently and stood at 1,896 points at the end of last week.
The company is expanding its fleet with nine 9,000 teu methanol-powered and additional LNG-powered vessels and new services in services in the transatlantic, India, and South America.
Did you subscribe to our daily Newsletter?
It’s Free Click here to Subscribe!
Source: Container News
