The loss was more acute than the $23 million the line lost in the first quarter of 2010. Hanjin's container division had an operating profit of $532 million in 2010 after losing $632 million in 2009. The container line netted $95 million in the fourth quarter of 2010.
The first quarter loss also came despite container volume rising 15.6 percent to 945,301 TEUs.
Hanjin's bulk division turned in a $17 million operating profit on revenue of $354 million.
The line said the first quarter loss was primarily attributable to 'deteriorating freight rates' on the Asia/Europe trade, 'where capacity is expanding and there are increased fuel and logistics costs.'
'Despite the gradual recovery of the global economy and the growing cargo demand towards the traditional peak season, we are concerned with the negative impact of the slowing recovery of the housing market and high unemployment rate in the U.S., increasing capacity in east/west trade and hiking oil prices,' the line said in a statement. 'In this regard, we will concentrate on maintaining profitability by optimizing our trade lanes through various cost-cutting measures.'
