Hanjin Shipping suffered an 80.7 per cent fall in profit to KRW18.3 billion (US$19.6 million) in the first half of 2007, according to a company statement

The Korean shipping giant blamed rising stevedoring, transportation and chartering costs for the fall in operating and net income with operating income declining 41.4 per cent to KRW 31.1 billion.

Sales increased in the container and bulk trades, the company said with the container business increasing 7.8 per cent to KRW2.64 trillion and bulk rising 26.5 per cent to KRW518.3 billion year on year.

Driven up by the steady rise in the container volume, the US dollar revenue rose 12.8 per cent and Korean won revenue by 9.5 per cent.

Hanjin said it expected a rise in the container volume as the annual peak season begins in the second half and for the Asia-to-Europe trades to "score higher" too.

But the company also foresaw fuel charges rising in the second half, which would offset expected gains.

"We will make our best efforts in reaching our annual targets by restructuring the container movement cost-effectively, developing new Asia to Europe services where demand stays strong and by casting new vessels into our service lanes," said a company statement.