Hanjin reports third quarter loss

   Hanjin Shipping said it had a loss of 317.6 billion ($297 million) South Korean won in the third quarter compared with a loss of 47.3 billion won in the same 2012 period.
   The company’s container business had a 47.8 billion won operating loss in the third quarter of 2013 compared to an 78.6 billion profit in the third quarter of 2012.
   Total sales were 2.7 trillion won in the third quarter, 7-percent less than the same period in 2012.
   The company attributed the operating loss in the container division mainly to “oversupply in main service routes during the peak season and delayed freight rate recovery even though container transport volume in Trans-Pacific and Asia-Europe trades increased by 4.3 percent and 6.4 percent year-on-year respectively.”
   Hanjin said it moved 1.23 million TEU in the third quarter, 5.8-percent more than in the same 2012 period.
   “The container shipping market is still facing difficulties mainly due to the oversupply situation. However, with the holiday season approaching and continuous eco-steaming, vessel-idling, service rationalization and rate restoration by global carriers, container freight rates are expected to stabilize gradually,” said Hanjin. “We will also concentrate on recovering freight rates with all possible cost reduction measures in order to improve operating margin.”
   Hanjin’s bulk business had a third-quarter operating profit of 8.9 billion won, a 394-percent increase over the same period a year earlier. It said, “Bulk cargo volume is likely to recover in the fourth quarter, with growing demand for crops in the U.S. and Russia as well as demand for heating and stock piling in the winter season.”
   The company said its terminal business achieved operating profit of 17.9 billion won in the third quarter, a 110.6-percent increase, with positive performances by affiliated companies including Hanjin New Port in Busan and TTIA terminal in Spain, etc.
   On Monday, Young Min Kim, Hanjin Shipping’s president and chief executive officer, resigned from his position on “to take responsibility for the company’s continuing losses and delay on financial support from major creditor banks.”
   He said he would stay on until a successor is named.