Against the backdrop of a persistently pressured shipping market, South Korea’s shipping giant HMM (Hyundai Merchant Marine) has delivered a remarkable “counter-cyclical” performance in Q1 2025.

According to its latest financial report, HMM’s Q1 revenue surged 23% year-on-year to KRW 2.855 trillion (approx. USD 2 billion). Operating profit jumped 51% to KRW 614 billion (approx. USD 439 million), while net profit soared 52% to KRW 740 billion (approx. USD 520 million). The operating profit margin also improved from 17.5% to 21.5%, demonstrating strong profitability.

HMM attributed the impressive results to a range of strategic moves—including fleet expansion, new route launches, and enhanced sales strategies—despite falling freight rates and heightened uncertainty from U.S. tariff policies.

However, this stellar report card doesn’t signal unshakable optimism. In fact, HMM acknowledged that market instability is expected to persist. Key risk factors include uncertainty around U.S. tariff negotiations, global overcapacity, and the unresolved disruption in the Red Sea shipping corridor—all posing potential threats to stability.

Notably, HMM also warned of a visible decline in cargo volume from China to the U.S., which could further disrupt the supply-demand balance and intensify pressure on freight rates. For global shipping companies that have only recently exited the post-pandemic profit bubble, this serves as a sobering reminder.

As the global shipping industry enters a post-COVID era—marked by geopolitical tensions and shifting policy landscapes—HMM’s Q1 performance stands both as a case study in proactive strategy and a reflection of the hard realities: while profits can be earned through decisive action, navigating an ever-changing market remains the true test.