SOUTH Koreas Hanjin Shipping saw a recovery in its financial fortunes in the first quarter after cutting net losses while posting a small operating profit, the company said today.The line, which operates around 200 boxships, bulkers and liquefied natural gas carriers, posted a net loss of $118m between January and March.This compared with a $191m net loss in the first quarter last year and a fourth quarter net loss of $239m.The carrier said operating profit topped $2.2m for the first quarter this year against an $176m operating loss in the first quarter 2009 and an $139m operating loss in the fourth quarter.Overall sales climbed 32.9% to almost $1.7bn between January and March compared with almost $1.3bn in the first quarter last year and $1.6bn between October and December.Hanjin Shipping, which generates 75% of revenue from liner shipping, said the boxship division posted an $8m operating loss because of insufficient freight rate increases on transpacific services as well as lay-up costs for vessels in the slack season.The company said the container division saw a 38.8% surge in sales to almost $1.4bn as a result of a sharp rise in cargo volume and rates from major trades including Asia-Europe and the transpacific.The carrier said liftings soared 30.1% to 817,639 teu in the first quarter, up from 628,599 teu in the same period last year.But the operating loss was offset by a $10m operating profit from the bulk trades.This followed improved profitability from time charters on small and medium sized vessels in spite of some decline in revenue from the return of chartered tonnage. Revenue from the bulk division climbed 13.1% to $327m.

Hanjin Shipping added that vessel supply in the containtership market would increase in the second quarter along with the delivery of mega-sized vessels and redeployment of laid-up ships.

Source:Llyods List,May 1,2010