HMM takes delivery of “HMM Garnet”, first of 12 LNG-ready boxships

South Korea’s HMM one of the world’s top ocean carriers reported profits despite the market uncertainty.

HMM reported an annual operating profit of KRW 585bln (about $438,58m), with a margin of 7% for 2023.

The net profit came to KRW 1,006 bln (about $754,14m), with a margin of 12% in 2023. The revenue stood at KRW 8,401bln (about $6,3bln) last year, while the financial structure has remained solid.

The company’s debt-to-equity ratio slightly improved to 20% in 2023 from 25% in 2022.

Overall, the slowdown in demand and the influx of new containerships led to the normalization of the container shipping market, putting the freight rates in key trade lanes under downward pressure during 2023.

The Shanghai Containerized Freight Index (SCFI) in 2023 was 1,006 points on average, significantly down 71% from 3,410 points in 2022.

“Disruptions in the Red Sea region are still underway, and a severe drought in the Panama Canal restricted daily vessel transits. Both issues have led to widespread uncertainty and market volatility,” HMM said.

HMM will take delivery of twelve 13,000 TEU containerships this year, reaching its fleet capacity of 1 million TEUs.

HMM Garnet is the very first vessel of the twelve 13,000 teu containerships that the company took delivery earlier this year at a heartwarming naming ceremony.

Once delivery of all ships is completed, large containerships of more than 10,000 teu will account for 80% of HMM’s fleet, substantially improving cost structure and operational efficiency.

Looking ahead the South Korean company said: “Regardless of the recent sale process, HMM makes great efforts to enhance its business capability for the swift response to the ever-changing market environment and will continue to secure a solid foundation for future growth.”