Record earnings for HMM in the first quarter
HMM announced its financial results for the first quarter of 2022, in which the company recorded record profits, mainly due to freight rates and efficient fleet operations.
HMM’s financial results (consolidated)
Meanwhile, the Shanghai Containerized Freight Index (SCFI) was 4,851 points in the first quarter of 2022, up 74.5% compared with the first quarter of the previous year, which helped HMM to have such positive results.
According to the company, world trade remained tense due to Russia’s invasion of Ukraine and strict lockdown measures in China in the first three months of 2022. “These uncertainties are still widespread and market volatility is expected to continue in the coming months,” said HMM.
Another factor that will affect global supply chains, according to the Seoul-headquartered box line, is the contract negotiations between the International Longshore & Warehouse Union (ILWU) and Pacific Maritime Association (PMA), scheduled on the west coast of the United States.
HMM warns that high inflationary pressures could negatively affect the increase in demand in Asia-North American trade, which has the highest percentage of its business portfolio. However, HMM expects container volumes to rise moderately, resulting in the gradual easing of the lockdown in Shanghai and the demand for inventory replenishment in the United States.