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HMM’s first quarter revenue dropped 4.8% to ₩2,719 billion (US$1.82 billion) from ₩2,855 billion in the same period last year, based on the company’s preliminary financial report
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The South Korean shipping and logistics firm cited the decrease in freight rates and rising costs related to the Middle East crisis
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Net profit was cut by more than half to ₩354 billion from ₩740 billion; operating profit was also down to ₩270 billion from ₩614 billion
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On a positive note, the company said it was able to maintain an operating margin of 9.9%
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Looking ahead, HMM expects continued market uncertainties due to increased capacity with the delivery of new vessels, elevated costs, and US tariff policies
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In response, HMM will implement fuel cost optimization strategies for its container business, launch new routes to markets like Africa while securing new demand in regions such as Southeast Asia, and enhance profitability through the operation of very large crude containers
HMM’s first quarter revenue dropped 4.8% to ₩2,719 billion (US$1.82 billion) from ₩2,855 billion in the same quarter 2025, based on the company’s preliminary financial results.
The South Korean shipping and logistics firm cited the decrease in freight rates alongside increased costs related to the Middle East crisis.
Net profit was cut by more than half to ₩354 billion from ₩740 billion during the period in review.
Operating profit was also down to ₩270 billion from ₩614 billion.
HMM noted that the Shanghai Containerized Freight Index (SCFI) averaged 1,507 points in the first quarter, down 14% from 1,762 points in Q1 2025.
Major routes saw steep declines, with US West Coast and East Coast rates dropping 38% and 37%, respectively.
On a positive note, the company said it was able to maintain an operating margin of 9.9% despite the sharp drop in freight rates and rising costs.
Looking ahead, HMM expects continued market uncertainties due to increased capacity with the delivery of new vessels, elevated costs, and US tariff policies.
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In response, HMM will implement fuel cost optimization strategies for its container business to mitigate the impact of prolonged high oil prices.
It also plans to launch new routes to markets like Africa by adopting a hub-and-spoke strategy, while securing new demand in regions such as Southeast Asia.
For the bulk operations, the company aims to enhance profitability through the strategic operation of very large crude containers and will continue to secure long-term contracts for strategic cargo globally.
