Box lines continue to reap record profits, HMM reports US$4.6 billion earnings in 2022 H1

Container carriers continue to achieve record financial results in the post-Covid era with HMM announcing outstanding revenue and profits this time.

The South Korean box line achieved a net profit of US$4.6 billion in the first half of the year, reporting an outstanding 1,560% increase compared to the first six months of 2021.

HMM's revenue also increased by 87% to US$7.6 billion, while operating profit rose 153% to US$4.6 billion in the first half of 2022. At the same time, the operating margin increased to 61% from 45% in H1 2021.

The company said the main reasons for its increased earnings were continuing high freight rates and efficient fleet operations

Additionally, HMM noted that the financial structure remained strong with its debt-to-equity ratio improved to 46% in June 2022, from 73% in December 2021.

The global supply chain is forecast to remain strained in the coming months, according to HMM, which, however, said  that "demand growth is expected to be under downward pressure due to considerable uncertainties mainly related to widespread inflation, rising oil prices and recurrent coronavirus situation, in addition to geopolitical tensions."

HMM added, "Port congestion in major locations is still pervasive. In particular, growing concern about the logistics situation in North Europe is a major factor that will affect the supply chain."

In July, the Seoul-headquartered container carrier unveiled a medium to long-term strategy to become a top-rated global shipping and logistics company.

Source: Container News


Related News

Port of Singapore reaches 39 million TEUs in 2023
Port of Singapore reaches 39 million TEUs in 2023

The Port of Singapore handled 39 million TEUs in 2023, showcasing a 4.6% increase compared to the previous record of 37.57 million TEUs in 2021.

2M Alliance reschedules European services due to congestion issues
2M Alliance reschedules European services due to congestion issues

The largest container alliance in the world, 2M Alliance has decided to change the rotation of several services in Europe, due to port congestions and supply chain issues.

COVID-19 PANDEMIC ACCELERATES SMART REEFER CONTAINER ADOPTION
COVID-19 PANDEMIC ACCELERATES SMART REEFER CONTAINER ADOPTION

The global Covid-19 crisis has highlighted the importance of refrigerated container logistics to keep vital supplies of food and medicines, including vaccines, flowing around the world as nations locked down.


main.add_cart_success