Hanjin Shipping announced 2011 1Q business results with total sales of USD 1,967 million, operating loss of USD 11 million on the basis of K-IFRS non-consolidated financial statements.

For the container division, operating loss recorded USD 28 million despite the remarkable growth in cargo transport volume: 22.7% in the transpacific west-bound, 23.3% in Asia-Europe both bounds and 39.1% in intra-Asia both bounds. The main reasons for such deterioration are found to be the downturn in freight rates in Asia-Europe trade where capacity is expanding and the increased fuel and logistics costs.

Meanwhile, the bulk division achieved operating profit of USD 17 million due to the profits earned in advance with long-term vessel-chartering out and cargo transport contracts made during the previous market boom as well as 48.7% growth in Contract of Affreightment (COA) cargo volume.

The company adds, "In order to minimize the impact of hiking fuel prices and capacity increase, we will concentrate all our efforts in maintaining profitability through extensive cost-cutting measures and in reducing risks caused by the uncertainties of business environment."