Hyundai Merchant Marine quarterly loss hits record US$307 million

SOUTH KOREA's Hyundai Merchant Marine (HMM) has announced its worse ever quarterly loss of KRW379 billion (US$307 million) as well as an operating loss of KRW170.5 billion in its container trade.

Hyundai's container trade declined as freight rates on transpacific trade, which accounts for 44 per cent of its trade, dropped 38 per cent over last year's third quarter and six per cent quarter to quarter. On a positive note, transpacific rates increased in September after falling to a record low in July, according to Paris based Alphaliner weekly newsletter.

Because of its big exposure to the transpacific trade, Hyundai failed to benefit from rate improvement on Asia-Europe and intra-Asia trade which only accounts for 25 per cent and 31 per cent of its volumes. Rates on the Middle East trade are still low due to over capacity.

Hyundai's net loss for the first nine months of this year reached KRW724.25 billion.

Source: www.schednet.com