South Korea-based container carrier Hanjin Shipping has reported a net loss of KRW$638 billion (about US$586 million) for the full year of 2012, improving from 2011’s net loss of $757.9 million.
Annual sales were a record $9.7 billion, an increase of 11.2 percent year-over-year, as container volume increased by 7.4 percent compared with the previous year.
Operating loss was $100.9 million in 2012, although the loss decreased 78.6 percent from 2011, fueled by freight rate recovery on the main service lanes and cost-reduction efforts in lane rationalization.
Yearly container volume rose by 7.4 percent compared with last yeart. However, the company’s container division reported a loss of $149.5 million because of a limited container freight rate recovery affected by oversupply.
In a written statement, Hanjin Shipping predicted that the supply-heavy market will persist in the container sector because of the continuation of new mega-vessel deliveries, but it expects profitability to improve.