HMM 3Q Operating Profit Only 1.4 Trillion Won... 18 Times Year-on-Year

Impact of More Than Triple Surge in Ocean Freight Rates Compared to Last Year
"Diversifying Revenue for Q4 대비"

HMM's operating profit for the third quarter of this year exceeded 1.4 trillion KRW, achieving results 20 times higher than the third quarter of last year. This is attributed to the continued surge in maritime freight rates, as well as strengthened operations through the opening of new routes and the deployment of ultra-large vessels.

On the 13th, HMM announced preliminary results showing consolidated sales of 3.552 trillion KRW and operating profit of 1.4614 trillion KRW for the third quarter of this year. Compared to the same period last year, sales increased by 67.0%, and operating profit surged by an astonishing 1828.0%. Net profit for the same period also rose about 17 times to 1.7385 trillion KRW. The cumulative net profit for the first to third quarters of this year was recorded at 2.8843 trillion KRW.

An HMM container ship is docked at Busan Port.

This is interpreted as an effect of the geopolitical risks such as the Red Sea incident that began at the end of last year, which caused the Shanghai Containerized Freight Index (SCFI) to rise from an average of 986 in the third quarter of last year to an average of 3082 in the third quarter of this year.

Additionally, the opening of new services (Asia to Mexico), deployment of ultra-large container ships of 13,000 TEU (1 TEU equals a container 6.1 meters in length), and an increase in high-margin cargo contributed to profitability-focused operational strengthening. HMM also emphasized that continuous deployment of eco-friendly vessels has improved its operational structure.

For the fourth quarter, a traditional off-season, an overall weak market condition is expected. However, supply instability is anticipated to continue due to the impact of port strikes on the U.S. West Coast and schedule delays.

An HMM official stated, "In February next year, through cooperation with the new shipping alliance Premier Alliance and MSC, we plan to establish an optimal transportation service network tailored to changes in routes and regional supply and demand, focusing on business diversification and new revenue generation." He added, "Regarding the bulk sector, although the fourth quarter enters the seasonal peak, economic uncertainties such as the recovery of the Chinese economy remain. Therefore, we will strive to maximize profitability by extending long-term cargo contracts and securing new contracts."