HMM’S operating profit fell by nearly two-thirds in the second quarter of this year compared with the corresponding period last year, because of falling freight rates and a surge in operating expenses.

HMM cited the sharp decline in freight rates in the first half of this year, due to the impact of protective US tariff policies, as the cause of the slowdown in performance, following high rates in the first half of 2024 due to geopolitical issues such as the Red Sea crisis.

“The Shanghai Containerised Freight Index averaged 1,701 points in the first half 2025, down 27% from 2,319 a year earlier, reflecting weaker freight rates amid continued US protectionist tariff measures and trade tensions,” the company said.

HMM reported an operating profit of Won233.2bn ($168m) for the second quarter of 2025, down 63.8% on a year earlier.

Quarterly sales of Won2.6trn dropped slightly by 1.5%, while net profit was down 28.7% to Won471.3bn.

However, HMM emphasised that its operating profit margin for the first half of the year was 15.5%, placing it among the top global shipping companies.

Korea Investment & Securities analyst Choi Koh-un said: “Sales exceeded market expectations by 3%, but operating profit fell short. This was largely due to a sharp increase in operating costs. Container supply increased by 10% year on year, while port and cargo handling costs, including port in and out, loading and unloading, and inland transport, rose sharply by 32%.”

Meanwhile, HMM forecast that market volatility would increase in the second half of the year because of the expiry of tariff grace periods and ongoing renegotiations, and that supply chain congestion would continue due to shifts in regional demand.

In response to this uncertainty, HMM is preparing by deploying its fleet flexibly, generating stable revenue through long-term contracts, including COA for bulk cargo and reducing costs by improving vessel efficiency.

The company disclosed that the delivery of the remaining seven 9,000 teu methanol-powered containerships was scheduled to be completed between the second half of this year and the first half of 2026. The first two vessels have already been delivered.

Seven PCTCs ordered in 2023 are also scheduled for sequential delivery from September 2025. The company plans to secure a total of 13 bulk carriers, including four multipurpose vessels and two medium range chemical tankers.

The plan to expand the fleet is not just about introducing new ships.

“We will purchase competitive secondhand ships in line with market conditions to expand bulk carrier fleet, and diversify business portfolio,” HMM said.