HMM Ocean's liquefied natural gas vessel / Courtesy of HMM
By Nam Hyun-woo
Shipping giant HMM posted massive earnings in 2024, with its operating profit soaring fivefold from the previous year, driven by surging container shipping rates, the company said Tuesday.
In its regulatory filing, HMM said its operating profit grew to 3.51 trillion won ($2.41 billion) in 2024 from 584.77 billion won a year earlier, achieving a 500 percent growth.
During the same period, sales also improved 39.3 percent year-on-year to 11.7 trillion won from 8.4 trillion won, achieving an operating margin of 30 percent.
In the filing, the company said its “revenue and profit increased driven by the container market uptrend.”
Last year, freight rates across all routes increased due to geopolitical risks such as the Red Sea crisis and increased cargo volume between the U.S. and China amid the rising tensions between the two superpowers.
The Shanghai Containerized Freight Index, a key performance indicator, averaged 2,506 points in 2024, marking a 149 percent increase from the 2023 average of 1,005 points.
Regarding this year’s outlook, HMM said that “uncertainties persist due to trade conflicts stemming from U.S. protectionist tariff policies” and “an oversupply of container ships and a slowdown in global trade are expected to cause supply-demand imbalances.”
English (United States) ·