Hanjin losses grow

Hanjin Shipping has seen a further deterioration in its financial performance with a large loss in the second quarter.

The South Korean shipower posted a loss of KRW 200bn ($195m) against a loss of KRW 80bn in the corresponding period last year.

Revenue for the three months declined 14% to KRW 2.5 trillion, but the company returned to an operating profit of KRW 29bn.

Hanjin said the weak quarterly figures were due to foreign currency losses and less revenue from the disposal of older tonnage.

“The operating profit for the container business was KRW 37.5bn and was further helped by the scaling back of non-performing routes and company-wide efforts to cut costs and conserve fuel,” Hanjin said.

The weak dry cargo market saw Hanjin’s bulker arm post an operating loss of KRW 25bn, but this was an improvement on the loss of KRW 44.4bn a year earlier.

Looking ahead Hanjin said that with demand for container traffic likely to pick up in the coming months, along with more bulk cargo business, the company should be able to stay in the black in terms of operating profit.

“Bulk cargo could receive a boost through shipments of iron ore by key exporters, as well as the start of the grain transport season in the US,” it said.