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HMM’S ASIA-US VOLUMES SURGE BY 67%

South Korean shipping company Hyundai Merchant Marine (HMM) has seen a 67% year-on-year rise in its Asia-US volume in April 2017.

The company’s volumes jumped from 10,733 TEU/WK to 17,932 TEU/WK in April after HMM formed a strategic cooperation with 2M.

HMM’s Asia-US west coast (USWC) volumes were up by 73% in April 2017, rising from 7,604 TEU/WK to 13,186 TEU/WK at the end of the month, the company said citing PIERS Data.

Additionally, the carrier’s USWC-Asia volume also increased to 7,336 TEU/WK.

“HMM has raised its market share along with its ranking, as its volume has shown dramatic increase compared to last year,” HMM official said.

“We expect gradual improvements in profitability, since we’re heading into the peak season with higher volumes,” the official added.

Source: http://worldmaritimenews.com/

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HMM PLUNGES FURTHER INTO RED

South Korean shipping company Hyundai Merchant Marine (HMM) posted a net loss of KRW 734.6 billion (USD 653 million) in the first quarter of this year sinking further from a loss of KRW 276 billion reported in 2016.

The poor results were ascribed to lower charter rates that plagued the market during the quarter and higher fuel costs. However, better market conditions are expected for the remainder of the year.

HMM’s operating loss reached KRW 131.2 billion, narrowed from the previous year’s KRW 163 billion. Furthermore, the shipping company’s sales were also up by 7 percent standing at KRW 1.302 trillion.

During the quarter, HMM’s containerships handled 958,000 twenty-foot equivalent (TEU) containers, a 37 percent increase year-on-year, with markets in North America and Asia recording the biggest spikes, 41.4 percent and 62.4 percent respectively.

The results come following HMM’s recent strategic investments into new terminal operations and newbuilding tonnage.

Namely, just last week HMM reached an agreement to buy a 100 percent stake in Spain’s Total Terminal International Algeciras (TTIA), earmarking around USD 104.1 million for the stake in the terminal.

The company also decided to avail of the low newbuilding prices last month and ordered five 300,000 dwt very large crude carriers (VLCCs) from the compatriot Daewoo Shipbuilding & Marine Engineering (DSME) with an option of five more vessels.

World Maritime News Staff

Source: http://worldmaritimenews.com/

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Reports: Hanjin Shipping Liquidation Set for Feb 17

The rehabilitation process for the former South Korean shipping giant Hanjin Shipping is set to end on February 17, Yonhap News Agency cited the Seoul Central District Court.

The decision was made on Thursday by the South Korean court, some half a year after the cash-strapped carrier was put under court receivership as it succumbed to the prolonged depression in the shipping market.

The company filed for court receivership in late August 2016 as its creditors, led by the state-run Korea Development Bank (KDB), said they would not provide additional financial support to Hanjin starting from September 4.

In an effort to collect enough cash to pay back its creditors, the company opted to sell a number of its assets, including its entire Asia to US route network and operations on the routes, a number of containerships, as well as its overseas businesses.

Earlier this week, Hanjin’s stake in Total Terminals International (TTI), the operator of two facilities in Long Beach and Seattle, was sold to Swiss-based Mediterranean Shipping Company (MSC) and South Korean Hyundai Merchant Marine (HMM).

The acquisition, undertaken by MSC’s subsidiary Terminal Investment Limited (TIL) and HMM, includes all of Hanjin’s equity and shareholder loans in both TTI and the associated terminal equipment leasing company Hanjin TEC Inc.

World Maritime News Staff