According to regulatory filings released Wednesday, operating profit fell to 269.1 billion won ($180.6 million) in the three months to March, from 613.9 billion won a year earlier. Revenue slipped 4.8 percent to 2.72 trillion won, while net profit dropped 52 percent to 353.6 billion won.
The Shanghai Containerized Freight Index, a benchmark for global box rates, averaged 1,507 points in the quarter, down about 14 percent from a year earlier. Rates on HMM's flagship U.S. routes were hit far harder, plunging 38 percent on the West Coast and 37 percent on the East Coast as President Donald Trump's tariff regime continued to squeeze China-U.S. cargo volumes.
The Iran war, which has largely shut the Strait of Hormuz since late February, has rippled through the industry by tightening bunker fuel supplies and lifting oil prices. The price of Singapore 380 CST bunker, a key fuel for large vessels, climbed about 9% to $530 per ton from $486 a year earlier.
The crisis hit even closer to home on May 4, when the HMM Namu, a multipurpose carrier operated by the company, was struck by two unidentified flying objects while anchored off the United Arab Emirates, injuring one crew member.
"The conflict has driven almost all global shipping lines deeper into the red," said HMM CEO Choi Won-hyok during a press conference concerning the relocation of its headquarters to Busan.
The first quarter is traditionally a seasonal trough for container demand, and HMM said it still posted an operating margin of 9.9 percent, among the highest of major global carriers. The company plans to optimize fuel costs, open new African routes under a "hub-and-spoke" strategy and secure long-term bulk contracts.
Shares of HMM ended at 19,830 per stock, 0.15 percent higher than the day before.
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