News / Regional routes serve South Korean carriers better than long-haul

Photo: Sinokor

Many of South Korea’s regional carriers and feeder operators have announced their 2025 numbers, reporting double-digit growth in operating profits.

They posted a better financial performance than their ocean-going compatriots HMM, SM Line, and KMTC Line, proving that regional lanes are doing better than long-haul routes.

Sinokor, regarded as the largest privately owned South Korean container line, and its affiliate, Heung-A Line, both posted double-digit gains in operating profits.

Sinokor generated revenue of $1.5bn, operating profit of $228.2m, and net profit of $446.2m. Revenue increased by 8%, operating profit increased 14%, and net profit was up 52%.

Amid the turmoil caused by US tariffs, Sinokor achieved “a strong performance due to cost reduction efforts and better volumes on regional routes”.

Heung-A Line recorded revenue of $946.2m, operating profit of $136.6m, and net profit of $139m. Revenue increased by 21%, operating profit by 48%, and net profit by 76%.

Similar results were achieved by Namsung Shipping and its subsidiary, Dong Young Shipping.

Namsung saw revenue up 17% year on year, to $554m, while operating profit nearly doubled, to $52.5m, while net profit grew 62%, to $50.2m. Namsung has diversified its networks into Indonesia, Malaysia, and India, moves that bore fruit as the company achieved its highest sales in three years.

Dong Young recorded revenue of $192.3m, operating profit of $22.7m, and net profit of $24.6m. Sales increased 14% and operating profit by 11%. However, due to the absence of one-off gains, net profit fell30%.

Feeder operator CK Line recorded revenue sales of $319.7m, operating profit of $23.2m, and net profit of $22.6m, up 15%, 31% and 16%, respectively.

Pan Ocean, primarily active in dry bulk, saw revenue from its container shipping division, which concentrates on intra-Asia routes, up 21%, to $305.8m, and operating profit up 15%, to $33.3m.

Pan-Continental Line posted sales of $164.2m, operating profit of $16.5m, and net profit of $27.3m. Compared with a year ago, sales were up 15% and operating profit by 36%, but net profit dipped 1%.

Dongjin Shipping recorded sales up 6%, to $154.7m, operating profit up 36%, $15.3m, and net profit up just 2%, at $18m.

In comparison, HMM, South Korea’s flagship carrier, saw 2025 revenue dip 7%, to $7.5bn, operating profit fall 58% ,to $1bn, and net profit halved, to $1.3bn.

SM Line, active in the transpacific and intra-Asia lanes, saw a 61% rise in 2025 revenue, to $1.9bn, but higher costs saw operating profit drop 11%, to $273m. Higher investment income enabled net profit to grow 10%, to $284.7m.

KMTC Line, which resumed transpacific services last year after a 40-year hiatus, saw revenue dip 1%, to $2.1bn, and higher costs caused operating profit to fall 37%, to $182.9m, and net profit to decline 45% to $226.7m.