Hyundai Merchant Marine (HMM) is likely to remain in the red through until the second half of next year, its CEO Yoo Chang-keun has told Bloomberg in an interview.
HMM, which endured a massive restructuring last year and survived unlike compatriot Hanjin Shipping, has laid out plans to invest in box terminals in Southeast Asia as well as ordering new ultra large boxships once it returns to the black. More immediately, HMM is readying an order this year to replace some of its smaller ships that serve its intra-Asia needs, Yoo revealed.
“This year will be the year to strengthen our financials,” Yoo told Bloomberg. “We are targeting to make an operating profit in the third quarter of next year. By early next year, we expect much of the overcapacity in the market will be resolved.”
Yoo said he was cautiously optimistic container freight rates would recover this year.