SOUTH Korea’s HMM and Taiwan’s Yang Ming Line have managed to stay in profit in the first half of 2025 but dire second quarters have dragged results down substantially.
HMM saw 2Q 2025 revenue fall 1.5%, operating profit dive 63.9% and net profit slide 28.7% year-on-year, while the comparable figures for H1 2025 v H1 2024 were up 9.7%, down 19.4% and up 5.7% respectively.
This translated to revenue for H1 2025 totalling KRW 5,477 billion (USD 3.97 billion), with net profit of KRW 1,211 billion and operating profit of KRW 847 billion HMM said this nevertheless resulted in an operating margin of 15.5% one of the highest in the industry.
In Q2 2025, revenue was KRW 2,623 billion, net profit KRW 471 billion, and operating profit KRW 233 billion.
The carrier commented that the Shanghai Containerized Freight Index (SCFI) averaged 1,701 points in H1 2025, down 27% from 2,319 a year earlier, reflecting weaker freight rates amid continued U.S. protectionist tariff measures and trade tensions.
“The expiry of tariff grace periods and ongoing renegotiations are expected to increase market volatility, with regional demand shifts likely to sustain supply chain congestion,” HMM said.
Yang Ming Line reported a net profit of just TWD 985 million (USD 32.8 million) for the second quarter, a 93% decline year-on-year, earned on a 26% drop in revenues to TWD 38.6 billion. Operating profits at TWD 3.9 billion were down 72% y-o-y.
Half year operating and net profits were down 60% and 62% respectively, with YML saying profitability was impacted by weaker cargo volumes and freight rate levels, attributable to ongoing trade negotiation uncertainties.
Overall profitability was also affected by the recognition of income tax on undistributed earnings.
Looking forward YML observed that while the IMF has raised global GDP growth forecasts, uncertainties remain.
Both HMM and YML have major exposure to the trans-Pacific trades which remain affected by Trump-induced volatility.