HMM Sets Box Volume Record at Busan Port

Business & Finance

South Korean shipping company HMM informed that its cargo processing at Busan Port has hit a new record.

The company handled 167,018 TEUs of cargo through the port in July, representing a year-over-year increase of 93 percent. Previously, HMM set a record of handling over 150 thousand TEUs in Busan Port in April.

Transit cargo, in particular, has recorded 85,717 TEUs – soaring 133 percent year-over-year.

The company said its market share also set a new record of 10 percent, handling the second-largest volume after Maersk.

Processed cargo during the first seven months of the year reached 1.01 million TEUs, which is HMM’s first million TEU record in Busan Port this year. Greater than last year’s 1.16 million TEUs, HMM expects to surpass last year’s annual record within August.

The company attributed the performance to the high season’s strong market of China and South East Asia and its global shipping alliance with 2M – Maersk and the Mediterranean Shipping Company – and HMM + K2 – Sinokor Merchant Marine and Heung-A Shipping – consortium. The acquisition of overseas terminal assets has also played a great role regaining the trust of foreign cargo owners, according to HMM.

“With this speed, we expect to handle more than 1.8 million TEU in Busan Port this year, exceeding the aim of 1.5 million TEUs that we announced earlier this year” an official from HMM said.

Meanwhile, according to Piers Data, HMM’s volume in Asia – US West coast (USWC) in July increased by 63 percent to 15,346 TEU/WK year-over-year and its market share recorded 7 percent, increased by 2.2 percent point year-over-year.

The increase in container volumes, combined with various cost-saving efforts, helped HMM to narrow its operating loss to KRW 128.1 billion (USD 111.8 million) in the second quarter of 2017 from KRW 254.3 billion (USD 222 million) recorded in the same period a year earlier. The company’s operating loss in container business stood at KRW 96.2 billion, improved by KRW 123.8 billion YoY from KRW 220 billion. Earlier this month, the company said it expects its 3Q financial performance to be “dramatically” improved.

“We will do our best to grow further as Korea’s national carrier and contribute to rebuilding Korea’s maritime business,” HMM pointed out.