HMM Remains Profitable in 2025 Despite Global Freight Rate Collapse

South Korea’s HMM managed to stay in the black through a bruising 2025 for container shipping, posting a 13.4% operating margin even as freight rates collapsed across major trade lanes and several global rivals slipped into losses.

The Seoul-based carrier reported full-year revenue of KRW 10,891 billion ($8.38 billion), with operating profit of KRW 1,461 billion ($1.12 billion) and net profit of KRW 1,879 billion ($1.45 billion). While those figures were sharply lower than in 2024—operating profit fell 58.4% and net profit declined 50.3%—HMM’s ability to remain profitable stood out in a year when many competitors struggled.

The broader container market faced sustained pressure throughout 2025. The Shanghai Containerized Freight Index averaged 1,581 points, down 37% from 2024’s average of 2,506. Rates fell sharply across key routes, with U.S. West Coast spot prices down 49%, the U.S. East Coast down 42%, and Europe off 49%.

Larger global carriers were not immune. A.P. Moller-Maersk reported a $153 million loss in its Ocean division in the fourth quarter—its first quarterly loss in years—despite an 8% increase in volumes, as excess capacity continued to weigh on pricing.

Germany’s Hapag-Lloyd also felt the strain, posting full-year EBITDA of $3.6 billion, down from $5.0 billion in 2024, while EBIT slid to $1.1 billion from $2.8 billion. The carrier cited higher costs tied to ongoing Cape of Good Hope reroutings and start-up expenses linked to its Gemini Network partnership with Maersk.

Ocean Network Express slipped into the red during the October–December period, reporting a net loss of $88 million on revenue of $4.07 billion. CEO Jeremy Nixon pointed to a “challenging operating environment,” driven in part by steady newbuild deliveries that kept vessel supply ahead of demand.

HMM’s quarterly results, however, showed early signs of stabilization. Fourth-quarter operating profit rose 6.9% from the prior quarter, while net profit increased 19.7%. Revenue was largely flat quarter-over-quarter at KRW 2,708 billion ($2.08 billion).

Looking ahead, HMM warned that vessel oversupply remains a key risk, with a large wave of new containership deliveries expected to further strain the supply-demand balance amid muted demand growth.

To counter those pressures, the carrier plans to expand its hub-and-spoke network, strengthen low-emission service offerings, and improve cost efficiency through optimized feeder operations. HMM is also looking to diversify its bulk portfolio in search of new revenue streams.

Geopolitical risk added another layer of uncertainty in 2025, as most carriers continued to route ships around the Cape of Good Hope to avoid Houthi attacks in the Red Sea. By mid-January 2026, only about 26 containerships per week were transiting the Suez Canal, far below the roughly 80 weekly transits seen before attacks began in late 2023.

Maersk and Hapag-Lloyd said in February they would cautiously resume Red Sea transits on select services, starting with their Gemini Cooperation’s ME11 route. Whether that move signals a durable reopening—or remains a calculated gamble—will hinge on security conditions holding in one of the world’s most critical shipping corridors.

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