World News
HMM Set to Post Losses Through to Mid-2018 While Financial Situation Improves
South Korean shipping giant Hyundai Merchant Marine Co., Ltd. (HMM) says it will post losses through to the first half of 2018 as it works to improve its financial position, Malaysian media reports.
"This year will be the year to strengthen our financials," said Yoo Chang-keun, HMM's CEO.
"We are targeting to make an operating profit in the third quarter of next year. By early next year, we expect much of the overcapacity in the market will be resolved."
HMM says that, once it achieves a turn around to profit, it plans to order newbuild vessels in order to meet new emission regulations coming into force at the end of the decade.
"There appears to be a consensus that the industry won't be able to sustain with the level of freight rates we saw last year," said Yoo, adding "We are cautiously expecting rates this year to recover."
In December, Ship & Bunker reported that HMM had reached an agreement for strategic cooperation with the 2M alliance members, Maersk Line and Mediterranean Shipping Company S.A. (MSC), which will see the three parties cooperate on slot exchanges and slot purchases.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 649.00 | 0.50 | 775.00 | 3.50 |
| Rotterdam | 603.50 | 1.50 | 759.50 | 11.50 |
| Houston | 626.50 | 2.50 | 794.00 | 2.00 |
| Fujairah | 649.00 | 0.50 | 904.50 | 6.50 |
| Global 20 Ports Average | 664.00 | 2.00 | 855.00 | 0.00 |
| Global 4 Ports Average | 632.00 | 1.00 | 808.00 | 4.00 |
| Global Average Bunker Price | 716.50 | 1.00 | 901.00 | 12.50 |
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