HMM’s Q1 Net Profit Plunges 52.2%

HMM reported revenue of $2.01 billion, a 4.8% year-on-year decline, while net profit fell 52.2% to $260 million.

The South Korean shipping company HMM has announced its financial results for the first quarter of 2026. During the reporting period, the company achieved revenue of 2.719 trillion KRW (approximately $2.01 billion), representing a 4.8% decrease compared to the same period last year. Its net profit amounted to 354 billion KRW (approximately $260 million), marking a significant 52.2% drop year-on-year.

Addressing its performance, HMM noted that the average Shanghai Containerized Freight Index (SCFI) stood at 1,507 points during the quarter, a 14% decline from the previous year. Freight rates on major routes saw substantial drops, with rates to the US West Coast and US East Coast falling by 38% and 37%, respectively.

Despite the sharp decline in freight rates and rising costs driven by the ongoing crisis in the Middle East, HMM emphasized that it still maintained an operating profit margin of 9.9%.

Looking at the outlook for the global container shipping market, HMM anticipates that uncertainty will intensify due to an increase in new vessel deliveries, rising costs associated with the Middle East crisis, and US tariff policies.

In response, HMM plans to implement fuel cost optimization strategies to mitigate the impact of prolonged high oil prices. Additionally, the company intends to launch new routes in markets such as Africa through its "hub-and-spoke" strategy, while seeking cargo volume growth in Southeast Asia and other regions.

The hub-and-spoke strategy is currently a key development pillar for HMM. The company previously announced that it will launch a brand-new Mediterranean-West Africa service, designated as MA2, in July. The route will deploy five 2,800 TEU vessels, calling at ports in the following order: Algeciras - Tangier Med - Dakar - Tema - Lekki - Abidjan - Algeciras.

This new service is a crucial component of HMM’s hub-and-spoke strategy, designed to enhance competitive advantage by expanding feeder networks from logistics hubs. An HMM official further emphasized, "The MA2 service will serve as a strategic channel, closely connecting HMM’s core mainline services with highly promising emerging markets like Africa. Guided by the hub-and-spoke philosophy, we will continue to build a more comprehensive global route network and consistently create unique value."