Hyundai Merchant Marine narrows loss as revenues rise 18pc
KOREAN carrier Hyundai Merchant Marine (HMM) narrowed its first quarter operating loss 37
KOREAN carrier Hyundai Merchant Marine (HMM) narrowed its first quarter operating loss 37.9 per cent to US$88.9 million as quarterly revenues increased KRW1.31 billion (US$1.1 billion), a rise of 18 per cent.
HMM quarterly volumes increased 10.2 per cent year on year to 1,087,373 TEU. While volumes increased they were offset by rising fuel prices, up 13.4 per cent year on year to $423 per tonne.
'Liners' burden of high fuel costs is expected to increase due to the US sanctions against Iran, OPEC agreeing to cut oil production and increased demand of low-sulphur fuel oil in preparation for IMO 2020. HMM put its efforts into collecting the bunker surcharge to recover the higher fuel prices,' said a company statement.
'During the traditional slack season in the first quarter, freight rates took a downward turn resulting from volume decrease after the Chinese New Year holiday as well as intensified competition in the Asia-North America tradelane.
'The continuous US-China trade conflict is also one of key factors to obstruct the recovery of the market situation,' it said, and a spokesman added that the carrier would focus on its long-term shippers and higher-paying cargo.
'HMM will maximise its efforts to strengthen profitability by successfully securing service contracts with valued customers, rationalise its service network, attract high-value cargo and create competitive new service routes.
'Given rising demand during peak season, both freight rate and container volumes are highly likely to increase in the second and third quarters,' it said.