Hanjin Shipping, South Korea's largest carrier, is expected to swing to a net profit in the second quarter (Q2) of this year after a loss stemming from a supply glut and weak demand in Q1, said Kim, Young-min, president of the company Monday.
The net profit will be driven mainly by the increase of cargo rates applied to the route to Europe and America, Kim told Korean publication Maeil Business Newspaper.
Early last month, Hanjin Shipping and global shipping companies raised their rate on Asia-America lanes by $700 per container. Another round of cargo rate hikes is planned for this month in a bid to protect their profits from falling due to higher crude oil prices. The rate on Asia-America lanes will be raised, too.
The increased freight is a burden to cargo owners but the excessive decline of the cargo rate in the past will justify the increase, Kim said while adding that the rate increase will also be applied to Asian and South American lanes, helping the company improve its cash flow.
Hanjin Shipping will secure four 13,100TEU container ships this year and five more next year for services in the Asia-Europe lane. New container vessels will be used as part of its flagship fleet.
The net profit will be driven mainly by the increase of cargo rates applied to the route to Europe and America, Kim told Korean publication Maeil Business Newspaper.
Early last month, Hanjin Shipping and global shipping companies raised their rate on Asia-America lanes by $700 per container. Another round of cargo rate hikes is planned for this month in a bid to protect their profits from falling due to higher crude oil prices. The rate on Asia-America lanes will be raised, too.
The increased freight is a burden to cargo owners but the excessive decline of the cargo rate in the past will justify the increase, Kim said while adding that the rate increase will also be applied to Asian and South American lanes, helping the company improve its cash flow.
Hanjin Shipping will secure four 13,100TEU container ships this year and five more next year for services in the Asia-Europe lane. New container vessels will be used as part of its flagship fleet.