Bloomberg reported that Nippon Yusen KK cut its fleet expansion plan by up to 60 vessels as slowing economic growth curbs demand for transporting steelmaking commodities including coal and iron ore.

Mr Atsuto Kato spokesman of Nippon Yusen said that it will boost its fleet to as few as 940 vessels by the end of March 2011 as compared with an earlier plan of 1,000 ships. It had 776 vessels at the end of March 2008.

Mr Kato said that it will revise its medium term profit forecasts next year. He added that "Nippon Yusen can not avoid cutting its expansion plans with the economy this bad. Earnings will be influenced more by the drop in transportation rates than expansion costs."

The shipping line, which got 40% of revenue from transporting commodities last year, predicts net income of JPY 140 billion in the fiscal year ending March 31st 2009 and JPY 145 billion for the next two fiscal years.

Nippon Yusen said in March 20008 that it plans to spend JPY 1.4 trillion on 218 new ships including 132 dry bulk ships, tankers and liquefied natural gas carriers and 39 car carriers.