Pan Ocean Co., South Korea’s second-largest shipper, reported a 9% decline in second-quarter operating profit to 123 billion won ($88.5 million) as falling rates in the dry bulk sector offset gains in container shipping. The Seoul-based company’s first-half revenue climbed 21.6% to 2.69 trillion won ($1.93 billion), while operating profit edged up 1.3% to 236.3 billion won.
The dry bulk division, Pan Ocean’s core business, saw operating profit tumble 37.9% to 53 billion won due to weakness in the Baltic Dry Index, which measures commodity shipping costs. The index fell to 1,995 points on July 30, down 5.4% from the previous day, though it remains 16.8% higher than a year earlier.
Container operations provided a bright spot, with operating profit surging 104.6% to 15.3 billion won as freight rates stayed elevated. The tanker segment struggled, with profits falling 57.1% to 16.4 billion won despite market recovery expectations.
Pan Ocean transported over 25 million tons of cargo in the quarter and operates a fleet of 266 vessels. The company also released its annual sustainability report, highlighting environmental and governance initiatives as part of its ESG strategy.
Despite challenging market conditions, management emphasized its focus on operational efficiency and portfolio diversification to maintain profitability in volatile shipping markets.
