Hanjin container division suffers 19pc profit decline

HANJIN Shipping's container division operating profit declined 19 per cent in 2008 to KRW89 billion (US$64 million) because of lower freight rates, less cargo, higher fuel prices and a global economic downturn, the company announced.

But overall the Korean shipping giant made a KRW3.35 trillion (US$2.4 billion) operating profit from all divisions, drawn from revenues of KRW9.36 trillion.

Hanjin revenues increased 34.9 per cent year on year to KRW9.36 trillion in 2008 mainly because of increased freight rates and an expansion in the operating fleet.

While the container division achieved revenues of KRW7.17 trillion, up 26.7 per cent, owing to the increased transpacific freight rates, the bulk division realised KRW2.18 trillion from a larger fleet after the merger with Keoyang Shipping and higher cargo volume, said a company statement.

Operating profit in the bulk division rose KRW1.2 trillion to KRW2.46 trillion, mostly because of the improved market situation, increased capacity from the merger with Keoyang Shipping and higher cargo volume.

In 2009, Hanjin Shipping expects further contraction in the global economy from the financial crisis, which will likely affect conditions in the shipping industry.

In the first quarter, Hanjin Shipping expects an additional drop in cargo volume from the prolongation of slowdown in the global economy and traditional slack season. The company will maximise efficiency of vessel operation and cost control with the aim of generating the best results in the current market situation.

Source: Schednet