SEOUL, February 11 (AJP) - HMM, South Korea’s largest shipping firm, reported a sharp decline in operating profit for 2025, falling nearly 60 percent from a year earlier as weaker freight rates and excess vessel supply weighed on its earnings.
In a regulatory filing Wednesday, the company reported consolidated operating profit of 1.46 trillion won ($1.1 billion), down 58.4 percent from the previous year. Revenue declined 6.9 percent to 10.89 trillion won, while net profit reached 1.88 trillion won. The operating margin stood at 13.4 percent.
While many global carriers slipped into losses in the fourth quarter amid seasonal slowdowns and weak freight conditions, HMM said its operating profit rose 6.9 percent from the previous quarter.
Freight rates fell across major routes last year as container shipping capacity expanded while global trade softened, partly reflecting U.S. protectionist tariff policies, the company said. The Shanghai Containerized Freight Index averaged 1,581 points in 2025, down 37 percent from the previous year’s average of 2,506.
Rates on HMM’s key routes recorded steep declines, including drops of 49 percent on services to the U.S. West Coast and Europe, and 42 percent on U.S. East Coast routes.
The company also cited rising trade tensions and uncertainty over environmental regulations as factors likely to prompt route adjustments and fleet redeployments across the industry this year.
"To navigate market volatility, we plan to expand its service network and strengthen eco-friendly shipping operations," a company official said.
* This article, published by Aju Business Daily, was translated by AI and edited by AJP.
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