KOREA's Hanjin Shipping, the world seventh biggest container carrier, has posted a first half net loss of loss of KRW115.2 billion (US$103.6 million), a reduction of 66 per cent of the KWR339.6 billion loss made in 2012.

Company results also showed a first quarter net loss of KRW80.4 billion compared to the KRW1.2 billion made in the corresponding quarter last year and a first quarter loss of KWR34.8 billion.

Quarterly revenue fell 5.8 per cent year on year to KRW2.7 trillion, but increased 6.9 per cent over the previous first quarter. Container revenue was up 6.8 per cent from the first to second quarter, reflecting an 8.9 per cent quarter-to-quarter cargo tonnage growth.

Transpacific container volumes increased 10 per cent, Asia-Europe was up 7.6 per cent and intra-Asia box volume grew 8.3 per cent reported the company, adding that profits were weaker than expected because of shrinking demand, undermining attempts to implement sustainable rates.

Cost-cutting measures helped reduce losses, the company said, adding that it expected better returns in the third quarter during the peak season.

"In the third quarter, we will focus our efforts on maximising profit through additional freight rate recovery in major trades and continuous cost reduction," said the Hanjin statement.