Hyundai Merchant Marine announced a sharp decline in first-quarter results after saying that due to the expected global economic outlook will deteriorate, the company will focus on a series of cost-cutting measures to improve operational efficiency.

The airline said the easing of global supply chain pressures impacted revenue and profit and led to container shipping market normalization.

As the container market normalizes, South Korea-based Hyundai Merchant Marine (HMM) becomes the latest shipping company to embody the post-epidemic collapse of the container shipping industry. HMM's revenue fell 58% from $3.7 billion in the first quarter of 2022 to $1.6 billion.

According to HMM's first quarter report data, profits fell by 91% in the first quarter of 2023. Profit in the first quarter of 2023 was 285 billion won ($0.212 billion), down 91% from the same period in 2022. Revenue in the first quarter of 2023 was 2.08 trillion won, down 58% from the first quarter of 2022.

Hyundai Merchant Marine pointed out that the first quarter Shanghai Container Freight Index (SCFI) averaged 969 points, compared with the first quarter of 2022 (4851 points), and expected the global economy will maintain high inflation and interest rates and demand weakness trend continues to decline.

In the current transportation demand weak, volume decline in the background, HMM said that in response to the negative environment will focus on a wide range of cost-cutting measures, improve operational efficiency, so that its business in the market volatility and wide-ranging uncertainty competitive.

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