South Korean containership and VLCC owner HMM has posted its best-ever profit as it brings in more boxes to cope with demand.
First-half operating profit was KRW 2.4trn ($2bn), up 1,662% on the same period of 2020. The profit margin was 45.1%.
The company said revenue almost doubled at KRW 5.33 trillion.
Net earnings were KRW 364.6bn, turning around a loss of KRW 37.5bn in 2020.
HMM said the difference between the net and operating results was primarily down to a paper loss from the valuation of derivatives.
Container volumes increased 8.4% to 1.93m teu year-on-year.
Second quarter net profit was up 649% at KRW 210.5bn.
Boxes being bought
To "alleviate the current shortage of equipment" the shipowner is buying 120,000 teu of newly built containers, as well as 4,600 teu of reefer units.
HMM has taken delivery of 98,000 teu so far. All will be delivered by the end of 2021.
"The highly elevated freight rates are expected to last through this year at the least," the company said.
HMM is predicting that the global supply chain will remain strained, as terminal congestion and the lack of vessels continues.
Since August last year, HMM has deployed an extra 38 ships, including 29 for the Asia-North America trade.
"HMM will continue to deal with market changes flexibly and will contribute to stabilising the logistics flow worldwide," the company said.
