Deep-ocean going carriers perform well in first half

While maritime cargoes were increasing exponentially coming into this year, ocean going carriers have voluntarily reduced vessel space which has been overflowing in nearly every trade. This made it possible for shipping companies to charge peak season surcharges (PSS) as well as general rate increases (GRI) to shippers. Successful rates restoration efforts have allowed shipping companies to enjoy ballooning sales and net profits.

Hanjin Shipping reported sales profits of 77 billion won thanks to favorable container businesses started at the end of last year. These sale profits were surprisingly 19 times larger than the 3.9 billion won in the same period of last year. Its sales marked 2.62 trillion won for an increase of 20% over last year. Hanjin Shipping attributed the figures to cargo increases in Asia, including China, sales increases through rates restoration and cost cutting efforts.

Hyundai Merchant Marine also reported doubled sales profits, 87 billion won compared to last year. The company recorded 1.8823 trillion won in sales, a decrease of 21.6% over the first half last year, mainly due to selling off its car carrier division at the end of last year.

However, the quarterly report in the first half showed that the company really benefited from favorable maritime business coming into the second quarter when sales profits marked 76.8 billion won, where the first quarter was relatively slow at 10.2 billion won.

Seyang Shipping also succeeded in returning to the black with 2.15 billion won in sales profits in the first half. The company also said that its sales amount in the first half, 50.16 billion won, was already more than its entire sales receipts for last year, 46.9 billion won. Net profits for the period were the highest since the company’s inception in 1992, 2.83 billion won, which was 10 times larger than 2002.

Korea Line saw its sales profits in the first half grow by 80% over the same period last year to 23 billion won while sales increased by 3.3 % to 256.8 billion won. Especially, sales profits in the second quarter skyrocketed to 12 billion won, 13 times larger than in 2002.

The shipping industry generally expects this year to be record-breaking, considering the latter half is generally better.