Hanjin Narrows 2015 Dry Bulk Losses by Almost 40%

by Ship & Bunker News Team
Friday February 5, 2016

Hanjin Shipping (Hanjin) this week has reported a significant improvement in its 2015 performance for dry bulk, despite dry bulk experiencing what has been called its worst crisis in living memory.

The South Korean shipping giant's bulk division managed to reduce its operating loss by 39.6 percent to $93 million, an improvement on a loss of $154 million in 2014.

While overall revenue shrank, Hanjin still managed to post a net profit of $6 million despite difficult shipping markets.

The positive results compare favourably to a loss of $396 million in 2014.

Annual revenue, however, was down by 15.3 percent, or $6.86 billion, which Hanjin said was a result of lower freight rates.

Total sales in the container division fell 14.7 percent year-on-year to $6.3 billion, but "by solidifying low-cost structure and rationalizing service
lanes, the container division has managed to continue its positive operating profit since 2014."

Hanjin concluded by noting that "difficulties are likely to continue in 2016 container market due to the imbalance of supply and demand.

"Nonetheless, with aggressive expansion to emerging markets and strengthening competitiveness together with various cost saving efforts, it is expected to continue the positive figures this year."

In August last year Hanjin noted that reduced bunker costs had helped it to an improved operating profit.