South Korean shipping carrier HMM released its financial performance for the first quarter of 2026. During the period, the company posted operating revenue of 2.719 trillion South Korean won (approximately 2.01 billion U.S. dollars), down 4.8% year-on-year. Net profit stood at 354 billion won (around 260 million U.S. dollars), dropping 52.2% year-on-year.

Commenting on the results, HMM stated that the continuous decline in global container freight rates has exerted substantial pressure on its profitability. Data shows the average Shanghai Containerized Freight Index (SCFI) stood at 1,507 points in Q1 2026, a year-on-year decrease of 14%. Freight rates on the US West Coast and US East Coast routes saw particularly sharp declines, falling 38% and 37% respectively.

Nevertheless, HMM emphasized that despite the steep drop in market rates and rising operating costs driven by heightened geopolitical tensions in the Middle East, the company maintained an operating profit margin of 9.9%, demonstrating solid operational resilience.

Looking ahead, HMM expects greater volatility in the global container shipping market amid ongoing deliveries of new vessels, cost inflation from geopolitical risks, and uncertainty stemming from U.S. tariff policies.

To tackle headwinds, HMM plans to push forward fuel cost optimization initiatives to mitigate the impact of persistently high oil prices. The carrier will also accelerate its expansion into emerging markets, strengthen its global network via a hub-and-spoke strategy, and pursue new cargo growth opportunities across Southeast Asia, Africa and other regions.

The hub-and-spoke strategy has become a core development priority for HMM. The company previously announced the launch of its new Mediterranean–West Africa MA2 route in July, deploying five 2,800 TEU container ships. The port rotation includes Algeciras, Tangier, Dakar, Tema, Lekki, Abidjan, and back to Algeciras.

HMM noted that the MA2 route is a key pillar of its hub-and-spoke layout, designed to extend coverage from major logistics hubs to feeder markets and further enhance global service competitiveness.

A senior HMM official commented: “The MA2 route will serve as a vital strategic corridor linking HMM’s mainline network with high-potential emerging markets such as Africa. Going forward, we will continue refining our global shipping layout under the hub-and-spoke framework and build sustained differentiated competitive advantages.”