South Korean carrier HMM cautioned Wednesday that global container shipping faces heightened volatility as tariff grace periods expire and trade negotiations continue.
“The expiry of tariff grace periods and ongoing renegotiations are expected to increase market volatility, with regional demand shifts likely to sustain supply chain congestion,” HMM said in its first-half earnings commentary.
The carrier reported that the Shanghai Containerized Freight Index (SCFI) averaged 1,701 points in the first half of 2025, a 27% decline year over year, citing weaker freight rates driven by U.S. protectionist trade measures.
To navigate these conditions, HMM said it will rely on flexible fleet deployment and cost reductions, including the introduction of more fuel-efficient ships. The company has begun taking delivery of seven 9,000-TEU methanol-powered container vessels, with the remaining units arriving through mid-2026. Additionally, seven car carriers ordered in 2023 will start delivery next month, alongside four multipurpose vessels aimed at diversifying its fleet.
Although HMM did not provide further details on congestion trends, major European and Asian hubs—including Rotterdam, Antwerp, Singapore, and Shanghai—have been dealing with months of delays and berthing issues, partly linked to the Trump administration’s unpredictable tariff actions.
HMM’s financial performance reflected broader industry pressures. Second-quarter net profit fell 12% from Q1 to $342 million and was down 29% year over year, with revenue also slipping. However, strong first-quarter earnings helped lift first-half net profit to $879 million, up 5.7% from the same period in 2024.
Source: joc.com