HMM has recorded its largest ever profits following a change in fortunes that saw the carrier make a US$254 million loss in 2019 transformed into an US$831.1 million operating profit in 2020 amid soaring Pacific and Asia to Europe rates.
[s2If is_user_logged_in()]The South Korean carrier said that besides the increased freight rates the trading conditions in 2020, including the reduced cost of bunkers and more efficient vessels, including its 12 newly delivered ultra-large container ships, of 24,000TEU each.
Fourth quarter operating profits more than doubled to US$480.5 million compared to the third quarter with the operating margin increasing to 28.3% from 16.1% over the same period.
Profits in 2020 are all the more remarkable as the container volumes handled by the line in 2020 fell significantly from 4.28 million TEU in 2019 to 3.89 million TEU last year, a 9.2% fall for the year.
HMM expects the critical situation on the major east/west trades to alleviate by late spring, while with oil prices rising the company’s costs are also increasing.
The company will take delivery of eight newbuildings, of 16,000TEU each in the first half of this year, which will offer more capacity on either the Pacific or Asia to Europe trades.
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