South Korean shipping line HMM reported an operating profit of KRW 270b for the first quarter of 2026, marking a 56% decrease compared to KRW 614b in the same period of 2025. Revenue fell 4.8% year-on-year to KRW 2,719b from KRW 2,855b, while net profit dropped to KRW 354b from KRW 740b, though the carrier maintained an operating margin of 9.9%.
The financial downturn reflects declining market indices, with the Shanghai Containerized Freight Index averaging 1,507 points in Q1 2026, a 14% drop from Q1 2025, alongside steep freight rate decreases of 38% on the US West Coast and 37% on the East Coast.
Looking ahead, HMM anticipates increased uncertainties from newbuild deliveries, Middle East geopolitical costs, and US tariff policies, prompting the company to pursue fuel optimization, expand services into Africa and Southeast Asia, and secure long-term bulk contracts.