Blockbuster Q1 for HMM

SOUTH KOREA’s HMM saw total revenue in Q1 2025 grow by 23% to KRW 2,855 billion (USD 2,051 billion) from KRW 2,330 billion in Q1 2024.

At the same time net profit improved to 52% to KRW 740 billion in Q1 2025 from KRW 485 billion in Q1 2024, and operating profit increased 51% to KRW 614 billion in Q1 2025 from KRW 407 billion in Q1 2024.

In the container segment operating profit reached KWR 578 billion, up 65% y-o-y while net profit climbed by 52% to KRW 739 billion.

Liftings rose from 893,300 TEU in Q1 2024 to 930,600 TEU this year, with average revenue per TEU improving from USD 1,606 to USD 1,808, a 12% increase. Operating margin increased from 18.1% to 23.5%.

HMM observed that the Shanghai Containerized Freight Index averaged 1,762 points in Q1 2025, down from 2,010 points in Q1 2024, declining further to around 1,300 points by the end of the quarter.

Despite declining freight rates and the impact of U.S. tariff policies, HMM achieved solid profit growth in Q1 2025 through fleet expansion, the launch of new services, and strengthened sales efforts, it said.

Volatile market conditions are expected to persist due to risks from ongoing U.S. tariff negotiations, vessel oversupply, and geopolitical instability, including uncertainty over the resumption of transit through the Red Sea.

A decline in cargo volume from China to the U.S. is also expected to disrupt the supply-demand balance and place downward pressure on freight rates.

To enhance operational flexibility, HMM said it is deploying nine 9,000 TEU methanol-powered container vessels, scheduled for delivery and phased deployment by H1 2026.

“HMM will continue to reinforce its operations through fleet expansion and agile deployment in line with its mid- to long-term strategy,” the group said.