Hyundai posts US$152 million loss despite 46pc revenue hike, blames rates
HYUNDAI Merchant Marine (HMM)has posted a second quarter net loss KRW173.7 billion (US$152 million), drawn on revenues of KRW1.24 trillion, up 22 per cent.
"Although revenues increased, which helped narrow the company's operating loss, freight rates remained low, denting our bottom line," HMM said, also reporting that it handled 46 per cent more containers during the quarter to 986,000 TEU.
Asia-US west coast volumes increased 77 per cent year on year in June, from 7,953 TEU per week to 14,055 TEU per week, according to PIERS Data.
Last week, Yonhap reported that HMM was considering allocating more ships to US routes to meet demand and is expecting a shortage of container carriers on the high-traffic routes from August to October as U.S. customers want more products from China and Southeast Asia.
"As Maersk and MSC also deliver their products through our container carriers and vice versa on the US routes, we need to consult with them first," an HMM spokesman said.