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HMM stands alone in failing to secure higher rates in Q2
WITH all the main carriers posting rate gains of between 4 per cent and 22 per cent, South Korea's Hyundai Merchant Marine (HMM) sticks out for its failure to make the most of the improved fortunes seen in freight rates this year, according to analysis carried out by container consultants Alphaliner.
The average China Containerised Freight Index (CCFI) recorded a 28 per cent increase in the second quarter, compared to the same period last year, Singapore's Splash 24/7 reported.
"Hyundai Merchant Marine's average revenue was 6 per cent lower than the same quarter last year, as the carrier's failure to secure higher rates contributed to its poor performance - despite a 46 per cent increase in total liftings," Alphaliner noted in its most recent weekly report. HMM's revenue per TEU stood at US$973 in Q2, down from $1,037 a year prior.
HMM was one of just two carriers still reporting losses at operating level in the second quarter. Japan's Mitsui OSK Lines (MOL) was the other.
The Korean carrier's awkward position as a junior partner in the Maersk/MSC 2M alliance has been highlighted by Alphaliner in the past as tricky for it to be on a par financially with its peers.
By contrast, Alphaliner highlighted France's CMA CGM has the top performing carrier in the first half of 2017, with operating profits (core EBIT) reaching $724 million with an operating margin of 7.1 per cent.
"The impressive performance was achieved on the back of a 34 per cent increase in liftings and a 9 per cent improvement in average revenue," Alphaliner noted.
The average China Containerised Freight Index (CCFI) recorded a 28 per cent increase in the second quarter, compared to the same period last year, Singapore's Splash 24/7 reported.
"Hyundai Merchant Marine's average revenue was 6 per cent lower than the same quarter last year, as the carrier's failure to secure higher rates contributed to its poor performance - despite a 46 per cent increase in total liftings," Alphaliner noted in its most recent weekly report. HMM's revenue per TEU stood at US$973 in Q2, down from $1,037 a year prior.
HMM was one of just two carriers still reporting losses at operating level in the second quarter. Japan's Mitsui OSK Lines (MOL) was the other.
The Korean carrier's awkward position as a junior partner in the Maersk/MSC 2M alliance has been highlighted by Alphaliner in the past as tricky for it to be on a par financially with its peers.
By contrast, Alphaliner highlighted France's CMA CGM has the top performing carrier in the first half of 2017, with operating profits (core EBIT) reaching $724 million with an operating margin of 7.1 per cent.
"The impressive performance was achieved on the back of a 34 per cent increase in liftings and a 9 per cent improvement in average revenue," Alphaliner noted.
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