K Line lost $115m in Q3 ended Dec. 31, 2008
Japanese carrier "K" Line today reported a loss of 10.5 million yen ($115.2 million) in its third quarter ended Dec. 31, 2008, on operating revenue of $3.5 billion.
Japan's third-largest shipping company by sales attributed the loss to the sharp decline in dry bulk freight rates; a decrease in container cargo movements, rising fuel costs and the stronger yen.
In the April-December period profits dropped by 41 percent even as revenues climbed by 7 percent.
Nine-month net income totaled 40.7 million yen ($446,766), compared to 67.9 million yen ($759,469) in 2007.
Operating revenues in the nine-month period were $11.6 billion, up from $10.9 billion.
The company said container volumes on the eastbound trans-Pacific dropped by 15 percent on-year, due to the "sluggish" U.S. economy. Westbound trans-Pacific container traffic declined by 11 percent.
Despite the slowdown in Europe, container volumes from Asia to Europe increased by 23 percent as "K" Line deployed several large new container ships on the route.
But shipments to the Mediterranean trade, where "K" Line cut capacity, dropped by 5 percent.
It said declining cargo movements throughout the world meant that the volumes it carried during the third quarter ended Dec. 31 fell by 7 percent year-on-year.
Japan's third-largest shipping company by sales attributed the loss to the sharp decline in dry bulk freight rates; a decrease in container cargo movements, rising fuel costs and the stronger yen.
In the April-December period profits dropped by 41 percent even as revenues climbed by 7 percent.
Nine-month net income totaled 40.7 million yen ($446,766), compared to 67.9 million yen ($759,469) in 2007.
Operating revenues in the nine-month period were $11.6 billion, up from $10.9 billion.
The company said container volumes on the eastbound trans-Pacific dropped by 15 percent on-year, due to the "sluggish" U.S. economy. Westbound trans-Pacific container traffic declined by 11 percent.
Despite the slowdown in Europe, container volumes from Asia to Europe increased by 23 percent as "K" Line deployed several large new container ships on the route.
But shipments to the Mediterranean trade, where "K" Line cut capacity, dropped by 5 percent.
It said declining cargo movements throughout the world meant that the volumes it carried during the third quarter ended Dec. 31 fell by 7 percent year-on-year.