Hanjin Shipping becomes first KRW 10 trillion revenue carrier in Korea

Hanjin Shipping announced that the carrier recorded annual revenue of over KRW 10 trillion in South Korea.

The Korean carrier attained positive revenue in 2012 despite the continued poor Euro zone economic performance. However the carrier did not overcome the deficit in net loss and operating loss in the last year.

Hanjin Shipping saw its revenue for 2012 reach KRW 10.59 trillion, up by 11.2% compared with 2011 due to increases in container traffic.

Operating losses improved, narrowing losses by 78.6% over the year. Although the carrier struggled to cut costs through GRI and trade rationalization, Hanjin Shipping remained in the red, recording KRW -109.8 in operating losses.

Net losses in 2012 remained at KRW 638 billion due to foreign currency exchange with a low won-dollar rate. However, losses narrowed by 22.6% against 2011.

Meanwhile Hanjin Shipping predicts that the overall liner business in 2013 will be poor due to oversupply. A number of mega-container ships over 10,000 TEU will sail this year. However the economic rebound in China and the U.S. will begin in earnest and an increase in container volumes will follow.

In the bulk sector, oversupply will be a sticking point for the market restoration despite the return to prosperity and growing volume in China. < 김보람 기자 brkim@ksg.co.kr >