HMM has reported lower first-quarter earnings for 2026 as declining freight rates and mounting geopolitical costs weighed on performance.
The South Korean carrier recorded revenue of KRW 2,719 billion ($1.8 billion) in Q1 2026, down 4.8 per cent from KRW 2,855 billion ($1.9 billion) in the same period last year.
Net profit fell sharply to KRW 354 billion ($237 million), compared to KRW 740 billion ($496 million) in Q1 2025, while operating profit declined 56 per cent year-on-year to KRW 270 billion ($181 million) from KRW 614 billion ($411 million).
The carrier said weaker market conditions continued to pressure the container sector during the quarter. The Shanghai Containerized Freight Index (SCFI) averaged 1,507 points in Q1 2026, representing a 14 per cent decline from 1,762 points in the previous year.
Major east-west trade lanes saw steeper reductions, with freight rates on services to the US West Coast and East Coast falling 38 per cent and 37 per cent respectively.
Despite the weaker rate environment and higher operating costs linked to the ongoing Middle East crisis, HMM maintained an operating margin of 9.9 per cent.
READ: HMM nets $1.30m amid global shipping volatility
The company warned that uncertainty across the global shipping market is expected to intensify due to additional vessel capacity entering the market from newbuild deliveries, geopolitical instability in the Middle East and evolving US tariff policies.
Within its container business, HMM said it plans to implement fuel cost optimisation measures to offset the impact of sustained high oil prices.
The carrier also intends to expand its network presence in emerging markets, including Africa, through a hub-and-spoke strategy while targeting additional cargo demand in Southeast Asia.
In its bulk division, the company said it will focus on improving profitability through the strategic deployment of VLCCs and by securing additional long-term contracts for strategic cargo movements worldwide.
