The first quarter financials for many container shipping lines are not looking good. For example, South Korea-based HMM had a 91% drop in net profit for the first three months of the year, compared to a year earlier. With the drops in revenue and profit and a gloomy outlook for the global economy, shipping lines are scrambling to mitigate losses by cutting costs, applying blank sailings, and re-focusing on profitable trade lanes.
Exporters and importers may be impacted as weekly services may be disrupted. Stay in touch with your account managers for updates on the transit times of your regular trade lanes.
1. HMM says will take ‘cost-cutting measures’ after plunge in Q1 financials, Journal of Commerce. May 15, 2023. Accessed May 23, 2023.