IN WHAT IT modestly describes as “a solid financial performance in 2024” South Korea’s HMM has reported an operating margin of 30% for the year.
Operating profit increased 501% – to KRW 3,513 billion (USD 2.42 billion) – from KRW 585 billion in 2023.
Revenue was KRW 11,700 billion, with a net profit of KRW 3,781 billion. HMM debt ratio remained at 21%, “maintaining a solid financial position”.
The carrier said the results demonstrate its competitiveness in the global shipping market.
HMM noted the result came against a backdrop of the Shanghai Containerized Freight Index (SCFI) averaging 2,506 points in 2024, a 149% increase from the 2023 average of 1,005 points. (The highest annual level was recorded at 3,734 points on 5 July 2024.)
“The strong performance was driven by strategic fleet expansion and network optimization – deploying twelve 13K newbuilds, enhancing transpacific services, and launching the new FLX route [Asia-Mexico] – while also benefiting from the Red Sea crisis and rising US-CN trade demand,” HMM said.
Like many other carriers HMM enjoyed a particularly strong fourth quarter in 2024, with revenue up 53% year on year, operating profit up an astounding 2,253%, and net profit up 198%.
Looking to 2025 HMM said that despite the strong financial performance, uncertainties persist due to US tariffs, supply chain shifts, and overcapacity, which may pressure freight rates.
HMM is expanding its low-carbon fleet with nine 9,000 TEU methanol-powered and additional LNG-powered vessels. It is also strengthening its global network with new services in the transatlantic, India, and South America.
Under its mid-to-long-term 2030 strategy, HMM will enhance competitiveness through fleet expansion, portfolio diversification, digitalization and moving toward net-zero.
HMM is currently the world’s eighth-largest container line.
