Hanjin Shipping has been hit by a loss for its first quarter, erasing the profit recorded for the same period of 2015.

Net loss for the quarter ended 31 March 2016 was KRW261.1bn ($221.67m), as against the profit of KRW22.9bn in the year-ago period.

The quarterly revenue fell by 25.1% year-on-year to KRW1.59trn as contributions from across its business segments including container and bulk were reduced.

Looking ahead to the second quarter, Hanjin Shipping said container freight rates are recovering slowly as the annual peak season starts while for bulk shipping, continuous demolition of vessels is likely to deflate tonnage supply and lead to improvement of market conditions.

Meanwhile, the financially-shaken Hanjin Shipping has gotten creditors’ approval to proceed with a voluntary restructuring.

The Korean shipowner is also recently named as part of a six-member ‘third force’ in liner shipping under the proposed THE Alliance, which includes Hapag Lloyd, K Line, MOL, NYK and Yang Ming.