Troubled shippers report Q1 losses of billions of wonKorea’s troubled shippers failed to make profits in the first quarter of this year amid declining orders in the global market, according to performance reports released by each shipper on Monday.
Hanjin Shipping reported a loss of 115.7 billion won ($98.2 million). The shipper’s container business incurred an 88.5 billion won operating loss, while its bulk vessel division brought in losses of 35. 4 billion won.
The company’s total sales revenue for the first quarter was 1.59 trillion won, a 25.1 percent year-on-year decline.
A fall in freight charges was seen as a major reason for the losses, as supply exceeded demand in the market. Low demand for iron ore and coal seriously damaged the company’s bulk business, as declining orders significantly lowered the bulk vessels’ freight level.
Hyundai Merchant Marine, which recently failed to make it into the global shipping alliance, incurred bigger losses of 163 billion won. The shipper recorded 1.22 trillion won revenue for the first quarter, a 17.96 percent year-on-year fall. It recently sold off its bulk business.