SEOUL-BASED HMM joined an industry-wide profit surge in the third quarter of 2024 on the back of strong container market tailwinds.

The carrier, which controls the world’s eight largest boxship fleet, posted 67% year-on-year increase in revenue of Won3.6trn ($2.5bn) for the three months, with net profit soaring about 18 times to Won1.7trn

For the January-September period, HMM logged revenue of Won8.6trn and net profit of Won2.9trn

The explosive profit growth comes as the freight market experiences a boom, fuelled by strong demand and the ongoing Red Sea detour.

HMM attributed its financial gains to launching new routes, focusing on profitable sales and benefiting from the market upcycle.

But the company struck a cautious note on the fourth quarter amid seasonal weakness, although concerns over a potential US port strike early next year created uncertainty.

It expected that the new Premier Alliance, of which it is a member, and the partnership with Mediterranean Shipping Company on Asia-Europe trades, will optimise its network and boost revenue starting from February 2025.

On the dry bulk front, HMM noted persisting economic concerns and demand volatility, even as the sector enters the winter peak season. The firm aims to maximise profits through contract extensions.

HMM’s results mirror substantial earnings improvement recently posted by rivals, including Maersk, CMA CGM and Cosco Shipping, as carriers continue riding container shipping’s profit wave while preparing for leaner conditions ahead.

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