1.9 C
Monday, January 25, 2021
Home News Independent Pacific player SM Line sees highest profit since inception

Independent Pacific player SM Line sees highest profit since inception

Being a solo Transpacific carrier did not prevent SM Line Corporation from achieving its best result since its incorporation in 2016.

The South Korean liner operator was formed when the Samra Midas group acquired the remaining businesses of now-defunct Hanjin Shipping.

SM Line announced that it had an operating profit of KRW40.4 billion (US$34.59 million) for the third quarter of 2020, improving from a KRW3.9 billion (US$3.24 million) operating loss in the same quarter in 2019.

Revenue totalled KRW219.2 billion (US$187.67 million) and net profit came up to KRW30.2 billion (US$25.86 million). Cumulatively, operating profit for the first nine months of the year came up to KRW44.8 billion (US$38.36 million).

Earnings were buoyed by Transpacific freight rates, which are now at a 10-year high, due to blanked sailings amid the Covid-19 pandemic.

SM Line expects to do even better in the fourth quarter if current market conditions continue. SM Line CEO Park Ki-hoon said, "We will create the motto of being a small but strong company capable of creating sustainable and permanent profits."

In December 2017, the Samra Midas group engineered the merger of SM Line with another affiliate, Woobang Engineering & Construction, to improve the liner operator’s financial structure.

SM Line now operates two Transpacific services called China Pacific Express (CPE) and Pacific Northwest Service (PNS), as well as a number of intra-Asia services. Six 6,655TEU ships and three 4,300TEU ships are deployed to the Transpacific lanes.

The CPE service connects Ningbo and Shanghai in China with Gwangyang and Busan in South Korea directly to Long Beach. The PNS service includes Yantian in China and goes direct to Vancouver and Seattle.

Martina Li
Asia Correspondent

- Advertisment - LR Sustainability Decarbonisation Digital Adverts

Latest Posts

​OOIL to issue new shares on the market

Orient Overseas International Limited (OOIL) has entered into a Placing and Subscription Agreement with Faulkner Global Holdings Limited, its immediate parent company and part...

Updated: IMO Condemns Mozart pirates in escalation of African Piracy

In a significant escalation in West African pirate attacks, one crew member has been killed, while 15 seafarers have been kidnapped, on the container...

CU Lines guarantees equipment for maiden Asia-North Europe service

China United Lines (CULines) is assuring all shippers that it has enough containers to go around as it launches a solo Asia-North Europe service. In...

Port of Rotterdam test smart mooring system

The Port of Rotterdam has installed a smart bollard, developed in collaboration with the mooring and dredging company Straatman BV, along the quay of...

Busan Port Authority to build a new warehouse at the Probolinggo Port

Busan Port Authority (BPA) will establish and operate a bonded warehouse at the Probolinggo Port in East Java in order to expand its logistics...