Nippon Yusen Kaisha (NYK) has lowered its earnings forecast for the first-half of 2011 to a net loss of JPY12bn ($157.2m) due to weak freight rates and tonnage oversupply, Seatrade Asia online reports. For the cumulative second-quarter ending 30 September 2011, NYK projected a net loss of JPY12bn compared to a previous forecast made on 29 July of a JPY5bn net loss.
Revenue for the six-month period was forecast at JPY910bn, down from an earlier estimate of JPY935bn.
NYK said that cargo volumes in both North American and European routes had some increase during the summer season, but due to the launch of large scale containerships, demand-supply condition did not improve and freight rate levels were kept lower than expected.
“In the bulk shipping segment, volume of finished vehicle transportation for car carrier picked up as expected, but tanker market stayed weak and dry bulk division had some negative effect from weak market which had continued until earlier second-quarter,” NYK said in a statement.
It added that the appreciation of the Japanese yen and loss on sales of vessels will contribute to lower than expected net income.
Revenue for the six-month period was forecast at JPY910bn, down from an earlier estimate of JPY935bn.
NYK said that cargo volumes in both North American and European routes had some increase during the summer season, but due to the launch of large scale containerships, demand-supply condition did not improve and freight rate levels were kept lower than expected.
“In the bulk shipping segment, volume of finished vehicle transportation for car carrier picked up as expected, but tanker market stayed weak and dry bulk division had some negative effect from weak market which had continued until earlier second-quarter,” NYK said in a statement.
It added that the appreciation of the Japanese yen and loss on sales of vessels will contribute to lower than expected net income.