Korean shipping major HMM reported an 88% increase in net profit for the first half of 2024, reaching KRW 1,146 billion (US$ 841 million). Operating profit surged 125% to KRW 1,051 billion, contributing to an operating margin of 21.1%, the highest among global carriers.

“A boost in freight rates and the strengthening of profitability-oriented operations resulted in a growth in revenue and profits,” the company said.

Revenue rose 18.6% to KRW 4,993 billion from KRW 4,212 billion year-on-year.  For Q2 alone, revenue was 25% higher at KRW 2,663 billion, while net profit jumped 111% to KRW 661 billion. This strong performance was bolstered by a more than twofold increase in the Shanghai Containerized Freight Index (SCFI), which climbed from 976 points in H1 2023 to 2,319 points in H1 2024.

HMM anticipates that significant uncertainties from geopolitical risks and global trade tensions may lead to abrupt changes in the global shipping market.

To adapt, HMM aims to optimise its transportation network in response to shifting supply and demand across routes and regions. This includes acquiring new and used ships, launching new routes such as the FLX routes in Mexico, and expanding into diverse business ventures.

“HMM will prepare for the rapidly changing market situation by introducing ultra-large vessels, strengthening eco-friendly competitiveness and digitalisation, reducing costs and pursuing profitability-oriented operations,” the company added.

Korean shipping major HMM reported an 88% increase in net profit for the first half of 2024, reaching KRW 1,146 billion (US$ 841 million). Operating profit surged 125% to KRW 1,051 billion, contributing to an operating margin of 21.1%, the highest among global carriers.

“A boost in freight rates and the strengthening of profitability-oriented operations resulted in a growth in revenue and profits,” the company said.

Revenue rose 18.6% to KRW 4,993 billion from KRW 4,212 billion year-on-year.  For Q2 alone, revenue was 25% higher at KRW 2,663 billion, while net profit jumped 111% to KRW 661 billion. This strong performance was bolstered by a more than twofold increase in the Shanghai Containerized Freight Index (SCFI), which climbed from 976 points in H1 2023 to 2,319 points in H1 2024.

HMM anticipates that significant uncertainties from geopolitical risks and global trade tensions may lead to abrupt changes in the global shipping market.

To adapt, HMM aims to optimise its transportation network in response to shifting supply and demand across routes and regions. This includes acquiring new and used ships, launching new routes such as the FLX routes in Mexico, and expanding into diverse business ventures.

“HMM will prepare for the rapidly changing market situation by introducing ultra-large vessels, strengthening eco-friendly competitiveness and digitalisation, reducing costs and pursuing profitability-oriented operations,” the company added.