Hanjin Shipping reported a net loss of 80.4 billion won (about $72.3 million) in the second quarter, compared with a net loss of 1.2 billion won a year earlier and a net loss of 34.8 billion won in this year's first quarter.
Revenue in the quarter declined 5.8 percent year-over-year to 2.7 trillion won, but was up 6.9 percent over the first quarter. Container revenue increased 6.8 percent in the second quarter compared to the first, as freight volumes grew 8.9 percent quarter-over-quarter.
Container volumes in the trans-Pacific, Asia-Europe and intra-Asia trades improved by 10.0 percent, 7.6 percent and 8.3 percent, respectively. The South Korean carrier, the world's seventh-largest by global capacity, said container profitability was weaker than expected, as growth in cargo demand lagged capacity, putting downward pressure on rates.
Cost-cutting measures and some recovery in rates, however, helped the company narrow its loss in the first half by 66 percent, from 339.6 billion won in 2012 to 115.2 billion this year, and the company is looking for a bump in the third quarter as the peak shipping season kicks into high gear.
“In the third quarter, container business will see some transport volume growth as we enter into the peak season, and we will focus our efforts on maximizing profit margin through additional freight rate recovery in major trades and continuous cost reduction,” Hanjin said in a written statement.