Japan’s three largest ocean carriers, Nippon Yusen Kaisha (NYK), Mitsui O.S.K Lines (MOL) and “K” Line, have posted combined losses of over US$500 million for their container services in the final quarter of 2011, Porttechnology reports.
The figures have lead to the shipping lines admitting that even greater group-wide losses are expected at the end of the current fiscal year than previously thought, according to the JOC.
All three Japanese firms cited in their respective quarterly reports that they had been hit hard by a combination of low demand, falling rates, a strong yen and rising bunker prices.
The lines also noted how overcapacity had also affected its soft bulk and tanker markets on top of its container shipping.
MOL published container losses of $155 million for its October-December third fiscal quarter, after the shipping line experienced profits of $98 million during the same period in 2010. Revenue also fell by nearly 10 percent to $1.7 billion.
“Stagnation of ocean shipping markets has become prolonged while low-growth conditions persist in developed countries’ economies,” MOL said in a statement.
Meanwhile NYK lost $179 million in the quarter having recorded profits of $96 million the year prior. The company’s liner revenue fell by 9.6 percent to $1.3 billion.
“K” Line like the others before them suffered similar losses of $173 million, compared to a $69 million profit in 2010. The company also suffered significant revenue losses of 11 percent to $1.2 billion.
“K” Line admitted that the future of their container services looks “uncertain” when considering the state of the global economy. However, the firm did mention that they expect freight rates to recover further in the coming year having “bottomed out since the beginning of the year.”
The bleak news for Japanese shipping follows further bad news for shipping in the region after the South Korean shipper Hanjin Shipping announced huge losses of $487 million this week.
The figures have lead to the shipping lines admitting that even greater group-wide losses are expected at the end of the current fiscal year than previously thought, according to the JOC.
All three Japanese firms cited in their respective quarterly reports that they had been hit hard by a combination of low demand, falling rates, a strong yen and rising bunker prices.
The lines also noted how overcapacity had also affected its soft bulk and tanker markets on top of its container shipping.
MOL published container losses of $155 million for its October-December third fiscal quarter, after the shipping line experienced profits of $98 million during the same period in 2010. Revenue also fell by nearly 10 percent to $1.7 billion.
“Stagnation of ocean shipping markets has become prolonged while low-growth conditions persist in developed countries’ economies,” MOL said in a statement.
Meanwhile NYK lost $179 million in the quarter having recorded profits of $96 million the year prior. The company’s liner revenue fell by 9.6 percent to $1.3 billion.
“K” Line like the others before them suffered similar losses of $173 million, compared to a $69 million profit in 2010. The company also suffered significant revenue losses of 11 percent to $1.2 billion.
“K” Line admitted that the future of their container services looks “uncertain” when considering the state of the global economy. However, the firm did mention that they expect freight rates to recover further in the coming year having “bottomed out since the beginning of the year.”
The bleak news for Japanese shipping follows further bad news for shipping in the region after the South Korean shipper Hanjin Shipping announced huge losses of $487 million this week.