Hanjin Shipping announced 2009 Dec. results

Hanjin Shipping announced 2009 Dec. results consisting of USD 573 million in total sales and USD 26 million in operating loss for the first time after demerger.

Business results as of 2009 Nov. were reflected as Hanjin shipping holdings company’s discontinued business profit & loss. And new company, Hanjin Shipping counted only for Dec. sales and operating loss.

From the point of view before demerger, the container division led 4Q sales growth of 13.2% to USD 1,292 million mostly from the increase in the trans-Pacific volume and Asia-Europe freight rates recovery. Operating loss recorded USD 134million which is USD 43 million improved compared to the previous quarter. The bulk division displayed a growth of 8.4% to USD 321 million due to cargo peak season. Operating loss recorded USD 5million, improved compared to the previous quarter.

Additionally, 2009 total container division sales decreased 32.4% to USD 4,431 million and operating loss recorded USD 652 million due to the global recession and freight rates’ drop. Bulk cargo volume increased 16%, but total sales decreased 41.3% to USD 1,183 million and operating loss, USD 86 million mainly on account of deteriorating profitability of time chartered vessels and freight rates’ drop.

While 2010 shipping industry is expected as excess supply situation derived from new ship delivery previously ordered, supply side will decrease due to scrapping of older tonnage and slow steaming extension for reducing emissions and saving oil price. In addition to this, sales environment will be improved by the increase in container traffic due to the gradual economic recovery from US and Europe. Therefore, 2010 business target has been firmed as “financial stabilization by operating in the black in 2010” with the following strategies as shipping industry profitability enhancement, human resources empowerment for flexible reaction to emergency, financial structure improvement and business portfolio optimization.

(Source: Transport Weekly)