Hanjin Shipping, riding strong gains in container volume and revenue, climbed back into the black in the second quarter.
The South Korean shipping company posted group operating profit, including bulk and liner operations, of $63.3 million compared to a $200 million loss in the first quarter. Revenue jumped 18.4 percent year-over-year to $2.5 billion and 25 percent from the first quarter.
Container operations provided almost all of the profit turnaround, with division sales up 21.6 percent year-over-year as cargo volume increased 5.7 percent and rates recovered, especially in the trans-Pacific.
Volume in the second quarter was also 12.4 percent higher than in the first quarter.
“The container division’s profitability was improved through active rate recovery efforts on the Trans-Pacific and Asia-Europe trade lanes and lane rationalization efforts like space reduction on non-profitable lanes,” Hanjin said in announcing the results.
The outlook for the rest of the year also is improving, with Hanjin predicting further growth in volume during the peak season and pledging to “maximize profitability through additional rate increase plans on main trade lanes and various cost saving programs.”
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