Hyundai Merchant Marine quarterly loss hits record US$307 million

Time:2009-11-26 Browse:16 Author:RISINGSUN

SOUTH KOREA`s Hyundai Merchant Marine (HMM) has announced its worse ever quarterly loss of KRW379 billion (US$307 million) as well as an operating loss of KRW170.5 billion in its container trade.
Hyundai`s container trade declined as freight rates on transpacific trade, which accounts for 44 per cent of its trade, dropped 38 per cent over last year`s third quarter and six per cent quarter to quarter. On a positive note, transpacific rates increased in September after falling to a record low in July, according to Paris based Alphaliner weekly newsletter.
Because of its big exposure to the transpacific trade, Hyundai failed to benefit from rate improvement on Asia-Europe and intra-Asia trade which only accounts for 25 per cent and 31 per cent of its volumes. Rates on the Middle East trade are still low due to over capacity.
Hyundai`s net loss for the first nine months of this year reached KRW724.25 billion.