Hanjin announces Q2 operating losses

Despite the loss in profits, the company is relieved to see a ray of light in container transport volumes, which jumped 22.7% in comparison with the same period last year, contributing to 2.5% increase in total sales.

The bulk liner business did not fare as well, with total sales down from US$289m to US$227m, due to a downsized fleet and reduced volumes accompanied by declining rates.

Hanjin commented that the downward freight rates in the Transpacific trade attributed to its operating loss of US$200m for the container liner business, while the lower profitability of chartered vessels affected by the downturn of the bulk shipping industry led to an operating loss of US$23m for the bulk liner business this quarter.