Three major Japanese shipping companies reported record profits in fiscal 2007, which ended in March, thanks to an increase in ocean freight fees.
Nippon Yusen K.K. and Kawasaki Kisen Kaisha Ltd. <9107> enjoyed sizable increases in sales and profits. Notably, Kawasaki Kisen's consolidated recurring profit nearly doubled from the previous year.
Fees for shipping such products as iron ore rose to levels unseen before, according to a Nippon Yusen official.
On the back of strong demand for natural resources in China and other countries, large freighter fees more than doubled. Container vessel fees were also up for European destinations.
In contrast, ocean freight to North America was sluggish due to the U.S. economic slowdown.
At a time of soaring crude oil prices, fuel expenses increased by more than 20 billion yen at each of the three companies. A higher yen also helped drag down profits.
Nippon Yusen K.K. and Kawasaki Kisen Kaisha Ltd. <9107> enjoyed sizable increases in sales and profits. Notably, Kawasaki Kisen's consolidated recurring profit nearly doubled from the previous year.
Fees for shipping such products as iron ore rose to levels unseen before, according to a Nippon Yusen official.
On the back of strong demand for natural resources in China and other countries, large freighter fees more than doubled. Container vessel fees were also up for European destinations.
In contrast, ocean freight to North America was sluggish due to the U.S. economic slowdown.
At a time of soaring crude oil prices, fuel expenses increased by more than 20 billion yen at each of the three companies. A higher yen also helped drag down profits.