South Korean ocean carrier Hanjin Shipping said Thursday that its container shipping division reported a $652 million net loss for 2009, compared to a 2008 year-end profit of $100 million.
Hanjin official pointed to a major corporate reorganization late last year as a major reason for the negative turnaround. The reorganization saw the creation of separate subsidiary entities to control the formally centralized governance, logistics and investments, shipping line, and terminal activities of the carrier.
Hanjin officials also reported that its container line ended 2009 with a total box volume handled of 3.2 million TEUs, a 6 percent drop compared to 2008. Container revenue also slipped, falling a dramatic 32.4 percent to end 2009 at $4.4 billion.
The carrier's bulk division reported operating losses of $738 million for 2009, a nearly $1 billion drop over the $329 million profit made in 2008.
Hanjin officials said that despite the losses, the carrier expects to make a profit in 2010.
