HMM reported an increase in revenue, operating profit, and net profit in the first quarter of 2025 despite ongoing market volatility and declining freight rates.
Revenue for the quarter grew by 23% to KRW 2,855 billion, compared to KRW 2,330 billion in the same period of 202, according to the company's release.
Net profit rose 52% to KRW 740 billion, up from KRW 485 billion in the previous year.
Operating profit increased 51% to KRW 614 billion, from KRW 407 billion in Q1 2024. The operating margin improved to 21.5%, compared to 17.5% a year earlier.
The Shanghai Containerized Freight Index (SCFI) averaged 1,762 points in Q1 2025, down from 2,010 points in Q1 2024, with rates declining further to around 1,300 points by the end of the quarter.
According to the company, “Despite declining freight rates and the impact of U.S. tariff policies, HMM achieved solid profit growth in Q1 2025 through fleet expansion, the launch of new services, and strengthened sales efforts.”
HMM expects volatile market conditions to continue due to risks related to ongoing U.S. tariff negotiations, vessel oversupply, and geopolitical instability, including uncertainty over the resumption of transit through the Red Sea.
The company also anticipates that a decline in cargo volume from China to the U.S. will disrupt the supply-demand balance and further pressure freight rates.
HMM plans to enhance operational flexibility by deploying nine 9,000 TEU methanol-powered container vessels, which are scheduled for delivery and phased deployment by the first half of 2026.
HMM Co., Ltd. (formerly Hyundai Merchant Marine) is a leading South Korean container transportation and shipping company. It operates one of the largest and most modern container fleets globally, offering services on major shipping routes worldwide.