South Korean container line HMM is yet another major carrier to enjoy a bumper 2024, today reporting a 500% increase in operating profits, to $2.42bn.
Revenue for the year was $8.05bn, 39% up on 2023, delivering an operating margin of 30%, “demonstrating [HMM’s] competitiveness in the global shipping market”, it said, adding that its debt ratio was maintained over the year at 21%.
“The strong performance was driven by strategic fleet expansion and network optimisation – deploying 12 13,000 teu newbuilds, enhancing transpacific services, and launching the new FLX route, while also benefiting from the Red Sea crisis and rising US-China trade demand,” HMM said.
The strong spot freight rate environment also had an effect, the SCFI global average for the year at 2,506 points, 149% higher than 2023’s 1,005 points.
The FLX service, operated jointly with Premier Alliance partner ONE, is an express Asia-Mexico service deploying three 4,400 teu vessels on a port rotation of Ningbo-Shanghai-Busan-Lazaro Cardenas, according to the eeSea liner database.
For the fourth quarter, HMM’s year-on-year improvement was even more marked, with revenue up 53% year on year, to $2.17bn, while operating profit soared 2,250%, to $688m , compared with Q4 23’s $29.5m.
According to Alphaliner, HMM has a total fleet capacity of just over 900,000 teu, 15% of which is chartered, with an orderbook just shy of 10% of that total.
The carrier said today: “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, digitalisation and moving toward net-zero,” it added.
However, it warned that 2025 was difficult to forecast: “Uncertainties persist, due to US tariffs, supply chain shifts, and overcapacity, which may pressure freight rates.”
