It is reported that all of Japan's top three shipowners Mitsui OSK Lines, K Line and NYK sank into the red for the first half of the year, with only MOL still forecasting full year profit.
For the 6 month period ending September 30th 2009, K Line reported a USD 479.5 million net loss with revenues of USD 4.4 billion, while NYK racked up net losses of USD 325.4 million with revenues of USD 8.8 billion. MOL reported a net loss JPY 10 billion for the first half of the year compared to a JPY 124 billion profit in the same period a year earlier.
Although reporting a half year net loss MOL returned to the black in the second quarter, ending September 30th 2009, with a JPY 3 billion profit buoyed by the rebound in the dry bulk shipping market. MOL said both its tanker and car carrier businesses were loss making in the first half of the year.
K Line said volumes for its car carrier business were down 50% in the second quarter compared to the same period a year earlier. The company said in some areas signs of recovery in car sales had surfaced, but cargo movements had not fully recovered.
NYK said volumes for its car carriers in the second quarter were less than 60% of volumes it reported in the same quarter in the previous year.
All three companies container shipping businesses struggled.
MOL's container shipping business racked up a JPY 38 billion loss in the first half of the year. MOL said volumes from Asia to the US had fallen 19% in the first half of year compared to the same period in 2008.
K Line said both revenues and operating profits decreased pushing its container shipping business into the red. However it reported good progress on increasing freight rates on the Asia - Europe and North - South services.
NYK said its liner division significantly underperformed in the second quarter compared to the same period a year earlier and its cost cutting measures were insufficient to offset the decline in freight rates. The company did note though that average freight rates had bottomed out and there was good progress on rate increases.
(Sourced from www.lloydslist.com)
