The global shipping market grappling with overcapacity and low freight rates have pushed Kawasaki Kisen Kaisha (K Line) into first-half net loss of JYP18.6bn ($242.68m), Seatrade Asia online reports. K Line had achieved a healthy net profit of JPY26.33bn in the first-half of 2010.
“The marine transportation business environment deteriorated overall,” K Line summed up the global shipping market in its latest financial statement.
The company recorded first-half revenue of JPY496.99bn compared to JPY520.36bn a year ago.
The containership market lacked strength of cargo movements on North American, Europe and South/North service routes during the peak season, according to K Line.
In the dry bulk sector, an increase in tonnage led to a sluggish market despite continued support by China's iron ore imports.
Looking ahead, K Line believes the marine transportation business environment will face “ongoing adversity”, and it expects to post a loss for the financial year ending March 2012.
“The marine transportation business environment deteriorated overall,” K Line summed up the global shipping market in its latest financial statement.
The company recorded first-half revenue of JPY496.99bn compared to JPY520.36bn a year ago.
The containership market lacked strength of cargo movements on North American, Europe and South/North service routes during the peak season, according to K Line.
In the dry bulk sector, an increase in tonnage led to a sluggish market despite continued support by China's iron ore imports.
Looking ahead, K Line believes the marine transportation business environment will face “ongoing adversity”, and it expects to post a loss for the financial year ending March 2012.