SEOUL: HMM Co., South Korea's leading container shipper, announced that its third-quarter net income experienced an 18.2 percent increase compared to the previous year, attributed to elevated shipping rates driven by geopolitical tensions in multiple regions. According to Yonhap News Agency, HMM reported a consolidated net profit of 1.74 trillion won (US$1.24 billion) for the July-September period, a significant rise from the 95.4 billion won recorded during the same timeframe last year. The company's operating profit also saw a notable increase, reaching 1.46 trillion won from last year's 75.8 billion won, with sales rising by 67 percent to 3.55 trillion won. The operating profit surpassed market expectations by 31 percent, as indicated by a survey conducted by Yonhap Infomax, the financial data arm of Yonhap News Agency. HMM credited the impressive financial results to a substantial hike in shipping rates, spurred by geopolitical risks such as the Red Sea crisis that commenced in December 2023. The Shang hai Containerized Freight Index, an indicator of freight rate levels on major maritime routes, averaged 3,082 points in the third quarter, a stark contrast to the average of 986 points recorded in the same period last year. HMM also pointed to the inauguration of a new shipping route linking Asia and Mexico and the expansion of high-margin cargo services as contributors to its enhanced performance. Despite the strong third-quarter results, HMM anticipates a downturn in market conditions in the fourth quarter, traditionally a low season for the container shipping industry. Nonetheless, industry observers suggest that ongoing geopolitical risks may sustain elevated freight rates. Additionally, shipping rates could remain high in specific segments if the temporary halt in the United States port workers' strike ends and the strike resumes.