SEOUL, Nov. 13 (Yonhap) — HMM Co., South Korea’s top container shipper, said Wednesday its third-quarter net income climbed more than 18 percent from a year earlier on increased shipping rates amid geopolitical tensions across various regions.
Net profit for the July-September period totaled 1.74 trillion won (US$1.24 billion) on a consolidated basis, up from 95.4 billion won during the same period of last year, the company said in a regulatory filing.
Operating profit soared to 1.46 trillion won from 75.8 billion won last year, while sales jumped 67 percent to 3.55 trillion won.
The operating profit was 31 percent higher than the average market estimate, according to a survey by Yonhap Infomax, the financial data firm of Yonhap News Agency.
This photo provided by HMM shows a company container vessel. (PHOTO NOT FOR SALE) (Yonhap)
HMM attributed the stellar performance to a significant rise in shipping rates driven by geopolitical risks, including the Red Sea crisis that began in December 2023.
The Shanghai Containerized Freight Index, which reflects the level of freight rates on major sea routes, saw a dramatic increase, averaging 3,082 points in the third quarter, compared with an average of 986 points in the same period last year.
The company also cited the opening of a new shipping route connecting Asia and Mexico and the expansion of high-margin cargo services for its improved performance.
HMM said it expects weaker market conditions in the fourth quarter, a traditionally low season for the container shipping sector.
Observers, however, predict that persistent geopolitical risks could sustain higher-than-average freight rates. Also, shipping rates could remain high in certain segments if the port workers’ strike in the United States, currently on temporary halt, resumes.
odissy@yna.co.kr
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