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Hyundai Merchant sinking deeper into trouble

Logistic News - Published on Wed, 22 May 2019

Image Source: Enterprise IoT Insights
Korea Times reported that Hyundai Merchant Marine (HMM) is sinking deeper into trouble, as despite efforts to normalize operations, the shipper has continued to lose money over the past four years amid the global slowdown and intensifying competition. CEO Bae Jae-hoon has been trying to implement a full-scale overhaul across the firm’s shipping lines and business divisions, but the financial situation will likely force him once again to request government support.

According to a regulatory filing, the company logged a KRW 105.7 billion operating loss in the Q1, extending its losing streak to 16 consecutive quarters since the Q2 of 2015. It had narrowed the operating loss in the first quarter this year from 170.1 billion won a year earlier, and that sales grew by 18 percent to KRW 1.32 trillion during the same period.

HMM attributed the past quarter’s loss to increased fuel costs, stemming from US sanctions on Iran, OPEC members’ agreement to cut oil production and demands for low-sulfur oil amid the International Maritime Organization’s new maritime regulations.

Source :

Posted By : Rabi Wangkhem on Wed, 22 May 2019
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