The Sept. 13 AS Daily news item Report: Container lines back in black in Q2 2017 quoted a Drewry report that said Hyundai Merchant Marine (HMM) had to offer “steep discounts on freight rates to recover lost volumes from when the company was in a much more perilous financial position.”
However, a spokesperson for HMM told American Shipper, “HMM did not offer any steeply lower freight rates than market price in order to recover the lost volume. On the contrary, HMM’s average freight rates in 2017 Q2 have increased year-over-year, considering its operating profits in container business (excluding chartering/other income).
“Despite increased freight rates from last year, dramatic growth (up 95 percent year-over-year) of capacity and volumes in Asia Trade of which rates are relatively lower than other trade engendered the unit revenue increase limit,” the spokesperson said.
CORRECTION: Report: Container lines back in black in Q2 2017
