The business results of domestic shipping companies in the 2nd quarter has been released. The situation looks better than the 1st quarter but a lot of companies still remain in the red.

Hanjin Shipping recorded operating profit of 73.9 billion Won according to their consolidated financial statement, which is a successful turnaround in 6 quarters after turning to deficit in the 1st quarter last year. The company suffered an operating loss of 170.3 billion Won in the 2nd quarter of 2011.

Against the expectations of returning to profit, Hyundai Merchant Marine(HMM) failed to be in the black in the 2nd quarter. The operating loss increased by 170.6% from last year reaching 124.5 billion Won, which indicates a deficit for 6 consecutive quarters. The sales totalled 2 trillion 44.6 billion Won.

STX Panocean experienced sales of 2 trillion 677.6 billion Won, operating loss of 234.3 billion and net loss of 210 billion in the 1st half. Both operating profit and net profit turned into a deficit while the sales showed decrease by 7.1% from last year's 2 trillion 883 billion.

Higher focus on a container sector than other shipping lines seems to be the reason that Hanjin Shipping was able to make surplus only. Hanjin's ratio of container vs bulk is 8:2, the highest among the domestic shipping companies. HMM and STX Panocean respectively shows 6.5:3.5 and 2:8.

Hanjin's surplus is expected to further expand in the 3rd quarter. Traditionally the 3rd quarter is high season for container transportation affected by the beginning of new term in September in North America as well as Halloween and Thanksgiving Day.

HMM also expects turnaround during the 3rd quarter. Actually their container division turned into a surplus in June, however, no favorable factors are found in bulk sector. "Despite oversupply of vessels, there is still room for freight increase. We are determined to make profit without question in the 3rd quarter." a staff of HMM said.

Meantime, bulk shipping companies like STX Panocean have a gloomy prospect for the 3rd quarter which includes summer holiday season. Economic recession in Europe is another negative factor. It is analyzed that market condition for bulk sector would turn around in the 4th quarter at the earliest.

STX predicted that the 3rd quarter would be difficult for bulk shipping companies but sure about making surplus in the 4th quarter.