Asia/Pacific News
Low bunker Prices Help Hanjin Shipping Swing to Profit in First Quarter
Low bunker prices have led South Korea's Hanjin Shipping to report a positive profit in the first quarter of 2015, marking the possibility of a turnaround at the company after years of quarterly losses.
The company reported a net profit of KRW 22.9 billion ($21 million) compared to a loss of KRW 224.5 billion ($207.1 million) one year ago, while sales also increased 0.5 percent to KRW 2.15 trillion ($1.98 billion) from KRW 2.14 trillion ($1.97 billion).
“By building all-year-round low cost structure and strengthening core capability of the company, we are concentrating all our efforts to maintain stable figures," Hanjin Shipping said.
The company said it has been aggressively making efforts to cost-cut through better management of its service network and cutting back on cargo variable expenses.
The efforts mean that even though container volumes fell 0.7 percent year-over-year in the first quarter to 1.1 million TEU, container operating profit rose to KRW 164 billion ($151.3 million) from a KRW 36 billion ($33.2 million) loss the year before.
Hanjin Shipping also added that though its bulk business division suffered, the company's other businesses, including terminals, have seen operating profit grow.
Earlier this year, Hanjin Shipping pulled operations in the Port of Portland, which was partially seen as a response to the lengthy disruptions that the company experienced at the port during the U.S. West Coast labour disputes.
