HMM has reported its highest ever operating profit in the first quarter of 2021 with an increase in volumes and freight rates.
Revenue of KRW2428.0 bln in Q1 2021 was 84.9% up on KRW1313.1 bln in Q1 2020. The company said container handling volumes were 6.7% higher in Q1 2021 at 0.95 mln teu.
The company’s Q1 operating profit of KRW 1019.3 bln compared to a KRW2.0 bln operating loss in the same period last year. A first quarter net profit of KRW154.1 bln compared to a net loss of KRW65.6 bln in the first three months of 2020.
HMM’s monthly market highlights document showed the Shanghai Containerised Freight Index (SCFI) at 2,780 for the first quarter 2021 compared to 931 in Q1 2020. The company said it expects higher freight rates will continue through the first half of 2021, supported by supply chain disruptions and increased cargo demand.
“The widespread COVID-19 and insufficient vaccination program in many countries can lead to considerable uncertainty, negatively affecting container volumes on certain trade lanes.” HMM said in a press release.
HMM said it had added 24 extra loader vessels to handle increased cargo demand, and had plans to add 120,000 teu of dry containers in 2021 of which 42,000 teu had already been deployed.