Largest shipping companies of Japan reported finance losses

NYK Line profitThe three largest shipping companies of Japan reported finance losses for the fiscal year ended March 31, against the crisis of the bulk and container traffic markets. The crisis of the shipping market seriously affected the finance reports of K-Line, MOL and NYK. The three companies accounted total loss of about 240 billion JPY, but continue to be positive in targets and forecasts for 2016. The container and dry bulk shipping market is under serious pressure by the falling freight rates, overcapacity and economy slowdown of Asian countries, which seriously reflected to the finance statements of the companies employed in this business.

The net loss of K-Line for fiscal 2015 amounted to 51.5 billion JPY. The company’s revenue decreased by 8% yoy to 1.24 trillion JPY. The revenues from container operations dropped by 9.2% yoy, while dry bulk business dropped by 5.5%. According to the finance statement of the company the container traffic decreased by 5% yoy, while double-digit rate of decline showed all the main areas of traffic except for services between Asia and North America, where volumes were up 2%. The volumes in the direction of Asia-Europe decreased by approximately 13%, intra-on services dropped by 15%, on the North-South direction decreased by 7%.

The net loss of MOL for fiscal 2015 amounted 170 billion JPY. The company expects a further decline in revenue by 11.5% yoy, but company hopes to return on profit in next year and set targets of 20 billion JPY.

NYK Line’s revenue dropped by 5.4% yoy to 2.27 trillion JPY with net loss of 18.2 billion JPY. The company expects to reduce loss to 15 billion JPY in 2016.