[Edaily Reporter KIM YOON-JEONG ] DaishinSecurities forecast that HMM(011200)will continue to benefit from strong shipping rates, as a real shortage of shipping capacity persists due to the situation in the Middle East, despite an increase in new vessel supply. The firm maintained its “Buy” rating and raised its target price to 29,000 won.

On the 25th, Lee Ji-ni, an analyst at DaishinSecurities, stated, “As geopolitical bottlenecks persist, the company is expected to continue benefiting from strong ocean freight rates.”
HMM reported second-quarter revenue of 3.402 trillion won and operating profit of 354.1 billion won. Operating profit fell slightly short of market consensus due to higher freight-to-cargo ratios resulting from increased cargo volume, as well as rising oil prices being reflected in fuel costs with a lag of about two months.
However, DaishinSecurities projected that third-quarter earnings are likely to improve compared to the second quarter, driven by the carryover effect of freight rates and peak-season demand in the U.S.
The outlook for freight rates on trans-Pacific routes was also viewed positively. The analysis noted that while early shipments to avoid U.S. tariffs in the second quarter had largely concluded, demand remained robust through August as consumer goods shipments held steady ahead of the year-end shopping season and the back-to-school season. In contrast, freight rates in Europe were expected to weaken somewhat, as the impact of early shipments from the first half of the year had already been factored in.
Regarding HMM’s lower-than-expected average freight rates in the second quarter, the analyst explained, “We believe this is due more to the impact of alliance operations, blank sailings, and schedule adjustments than to a simple decline in market share.”
Despite concerns about oversupply due to an increase in new vessel deliveries, the analyst predicted that bottlenecks originating in the Middle East would offset this. Since last year, the container shipping industry has been characterized by structural oversupply resulting from an increase in new vessel deliveries, leading to persistent discount pressures despite rising freight rates.
The analyst stated, “Since the ongoing supply bottlenecks caused by the situation in the Middle East are unlikely to ease until 2026, we believe container shipping companies will continue to benefit.”