KOREA's Hanjin Shipping, the world's eighth biggest container line, narrowed its year-on-year quarterly loss 883 per cent to KRW34.7 billion (US$31.1 million) drawn on revenues of KRW2.49 trillion, up 10 per cent.
Box sales continued to rise as the container division enjoyed a 9.3 per cent rate of growth, resulting in sales of KRW2.06 trillion, a 14.1 per cent increase year on year.
The bulk division's revenues fell 11.1 per cent to KRW337.4 billion in comparison to 2012 first quarter due to decreased freight rates, the company said.
In terms of profitability, operating losses fell 72.4 per cent year on year to KRW59.9 billion because of container freight rate recovery, which represented a 7.9 per cent improvement.
Volumes grew 16.3 per cent in the North American trade, 15 per cent in the Asia-Europe trade and 7.4 per cent in the intra-Asia trade.
Despite this, the container business unit reported an operating loss of KRW70.6 billion mainly due to unsatisfactory rate increases. But the container operating loss was narrowed 71 per cent year on year.
Said the company statement: "The container sector's supply continues to increase with the delivery of mega vessels, but carriers' various efforts such as service rationalisation, slow-steaming, early return of chartered-in vessels and scrapping of old vessels, etc, are continuously implemented. Hence, the imbalance between supply and demand will gradually be eased, and the profitability is expected to improve through additional rate increases with the coming of peak-season as well as a stabilisation of oil prices."
Hanjin also said that even though some difficulties are inevitable due to supply growth, second quarter results will improve through continued rate restoration efforts and active cost cutting.
Hanjin Shipping operates 60 liner and tramper services and moves 100 million tons a year. Hanjin's fleet consists of 200 containerships, bulk and LNG carriers. It has four regional headquarters, 200 branch offices and 30 local corporations.
CONTAINER
03 May 2013 - 21:45
Hanjin narrows loss 883pc to US$31.1 million, sees better days ahead
KOREA's Hanjin Shipping, the world's eighth biggest container line, narrowed its year-on-year quarterly loss 883 per cent to KRW34.7 billion (US$31.1 million) drawn on revenues of KRW2.49 trillion.
CONTAINER
03 May 2013 - 21:45
Hanjin narrows loss 883pc to US$31.1 million, sees better days ahead
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