HMM reported lower revenue and profit for the first quarter of 2026 as container freight rates declined and operating costs increased.
Revenue fell 4.8% year-on-year to KRW 2,719 billion.
Operating profit dropped 56% to KRW 270 billion, while net profit declined 52% to KRW 354 billion.
HMM said the average Shanghai Containerized Freight Index fell 14% during the quarter to 1,507 points.
Freight rates on major trade lanes declined sharply. Rates to the US West Coast dropped 38%, while East Coast rates fell 37%.
The company also faced higher operating costs linked to the prolonged Middle East crisis.
Despite the weaker market conditions, HMM maintained an operating margin of 9.9%.
HMM expects market uncertainty to continue due to increasing vessel supply from newbuild deliveries, geopolitical tensions in the Middle East and US tariff policies.
In its container business, the company plans to optimize fuel costs and launch new services to markets including Africa through a hub-and-spoke strategy.
HMM also aims to expand cargo demand in Southeast Asia.
In the bulk segment, the company said it will focus on improving profitability through strategic VLCC operations and by securing additional long-term cargo contracts globally.
