South Korean Shipping Giant HMM Posts 500% Operating Profit Surge Amid Market Upheaval

South Korean shipping giant HMM delivered strong financial results in 2024, with revenue reaching KRW 11,700 billion (USD $8 billion) and operating profit hitting KRW 3,513 billion (USD $2.3 billion) — a 500% increase from the previous year — achieving a 30% operating margin.

Net profit climbed nearly 300% to KRW 3,781 billion (USD $2.6 billion).

“The strong performance was driven by strategic fleet expansion and network optimization, while also benefiting from the Red Sea crisis and rising US-China trade demand,” HMM said in a statement.

HMM reported a conservative debt ratio of 21% throughout 2024. The company’s performance was supported by higher freight rates, as evidenced by the Shanghai Containerized Freight Index (SCFI) averaging 2,506 points in 2024 – a significant 149% increase from 2023’s average of 1,005 points. The index reached its peak at 3,734 points on July 5, 2024.

HMM’s operational milestones in 2024 included the deployment of twelve 13,000 TEU newbuilds, enhanced transpacific services, and the launch of a new FLX route.

Looking ahead, HMM faces potential headwinds from market uncertainties, including US tariffs, supply chain shifts, and industry overcapacity that could impact freight rates. However, the company is positioning itself for future growth through significant investments in sustainable shipping.

“HMM is expanding its low-carbon fleet with nine 9,000 TEU methanol-powered vessels and additional LNG-powered ships,” noted the company, adding that it is “strengthening its global network with new services in the transatlantic, India, and South America.”

The company’s 2030 strategy focuses on enhancing competitiveness through fleet expansion, portfolio diversification, digitalization, and advancing toward Net-Zero emissions.

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