All 12 privately owned South Korean feeder operators had a profitable 2020 as the year saw a remarkable recovery in demand for intra-Asia shipping.
Korea Marine Transport Company (KMTC Line) continued to lead the pack, with revenue of KRW1.89 trillion (US$1.73 billion), up 3% year-on-year, while net profit soared 321% to KRW154.38 billion (US$142.02 million).
Higher freight rates on services between South Korea and the Persian Gulf, Southeast Asia and India was the main reason for the substantial growth in KMTC Line’s profitability, helped by bunker prices being lower by 8% in 2020 as oil prices fell amid the Covid-19 pandemic.
In revenue terms, Sinokor Merchant Marine’s consolidated revenue was KRW1.99 trillion (US$1.83 billion), up 30% from 2019. The company also owns Heung-A Line and Hansung Line as a subsidiary, booked a KRW54.71 billion (US$50.33 million) net profit, overturning the 2019 net loss of KRW2.28 billion (US$1.98 million), as Heung-A Line returned to the black after a loss-making 2019.
SM Merchant Marine, formerly known as SM Line Corporation, saw revenue up 8% to KRW847.9 billion (US$780.04 million), and achieved a net profit of KRW95.59 billion (US$87.94 million), reversing a KRW53.34 billion (US$46.17 million) net loss in 2019. The only other South Korean ocean-going liner operator besides the publicly listed HMM, SM Merchant Marine is planning an initial public offering in the second half of this year.
Namsung Shipping’s standalone revenue was relatively unchanged at KRW402.6 billion (US$370.38 million), but net profit rose fourfold to KRW17.42 billion (US$16.03 million). Namsung’s subsidiary, Dong Young Shipping, saw 2020 revenue rise 3% to KRW146.65 billion (US$134.91 million), while net profit doubled to KRW14.28 billion (US$13.13 million).
Dongjin Shipping’s net profit grew 137% to KRW6.42 billion (US$5.91 million) while Pan Continental Shipping’s net profit rose fivefold to KRW26.7 billion (US$24.56 million).
Other players included CK Line and Doowoo Shipping, saw their net profits up by 66% and 58%, respectively, to KRW1.13 billion (US$1.04 million) and KRW2.29 billion (US$2.11 million), while the net profits of Pan Ocean and Taiyoung Shipping fell 41% and 49% respectively, to KRW90.93 billion (US$83.65 million) and KRW3.13 billion (US$2.88 million).
Martina Li
Asia Correspondent
