Increased Bunker Cost Widens HMM’s Loss

Hyundai Merchant Marine vesselImage Courtesy: Pxhere under CC 2.0 license

South Korean shipping company Hyundai Merchant Marine (HMM) widened its loss in the third quarter of 2018 as bunker cost climbed up.

The company’s net loss reached KRW 166.7 billion during the quarter, compared to a net loss of KRW 60.3 billion reported in the third quarter of 2017.

HMM’s revenue for the period was up by 10 percent to KRW 1425.8 billion from KRW 1295.6 billion, while volumes increased by 12.8 percent to 1.18 million TEU, compared to 1.04 million TEU handled in the same quarter a year earlier.

Despite HMM cost cutting efforts and improvement in its revenue and volume, net loss continued in the third quarter of 2018 due to an increase in bunker costs and a delay in regional rate recovery.

Unit cost of bunkers surged by 43.1 percent year-on-year as total bunker costs in the company’s container business increased by KRW 73.1 billion.

Looking forward, HMM said that it would accelerate the acquisition of assets, such as eco-friendly mega containerships and terminals, through recently secured financial liquidity.

The company expects continuous market uptrend in US trade but slow growth in EU trade. However, a risk of volume decrease attributed to US-China trade war also resides in the shipping market, according to HMM.

Share this article

Follow World Maritime News

In Depth>


<< Nov 2019 >>
28 29 30 31 1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30 1

Salvage & Wreck

Salvage and Wreck Removal Conference will focus on Casualty management case studies, Dealing with hazardous cargo and container ship fires…

read more >

6th Mozambique Gas Summit & Exhibit

This year’s edition will have a revamped programme for attendees.

read more >

CrewConnect Global 2019

CrewConnect Global is the leading forum for collaboration to advance new industry approaches to seafarer recruitment and training.

read more >

CruiseConnect Global 2019

Attend CrewConnect Global and stay on for the CruiseConnect Summit to take part in an industry-wide conversation focused…

read more >