HANJIN Shipping, South Korea's biggest and the world's ninth largest container liners, have posted its 2011 results with a net loss of KRW823.9 billion (US$731 million), an operating loss of KRW492.6 billion due to high fuel costs and decline in freight rates.
Its full-year 2011 container volumes rose 12.4 per cent year on year, but the total sales were down 1.1 per cent to KRW9.52 trillion. This reflects that the negative operating factors have eroded profitability.
Hanjin's container division recorded an operating loss of KRW550 billion, said the company statement, because of high oil prices, soft freight rates and too much tonnage afloat.
The bulk division posted 4.9 per cent year-on-year growth in operating profit at KRW53.5 billion, due to the recovery in freight rates and 35.1 per cent cargo volume rise in the dedicated vessel section.
Hanjin believes the oversupply problem will persist in 2012 due to continuous deployment of mega-sized vessels.
source: shippinggazette / picture: google.com
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