JAPANESE shipping giant MOL has reported a quarterly loss of JPY5 billion (US$41 million) for its container business, drawn on quarterly revenues of JPY1.6 billion, which fell 12 per cent year on year.
This is the latest in a string of negative results to 17 consecutive straight quarters excluding the results of MOL's bulk, tanker and other shipping activities, reported Alphaliner.
MOL also expects the negative results for its container shipping business to continue, forecasting an ordinary loss of JPY2.5 billion in the third quarter of this year.
Total losses for the full fiscal year are now expected to reach JPY13.5 billion, compared to MOL's previous forecast of a gain JPY500 million made three months ago.
MOL attributed the poor performance and weak outlook to the continued volume and rate weakness on its Asia-Europe, Asia-South America and intra-Asia trades.
On the transpacific trade, MOL's cargo volumes were firm but the early resolution of the US west coast labour dispute led to a reduction in the freight rates.
The positive effects of the weak yen to dollar exchange rate and low fuel costs were not enough to reverse the negative impact of an eight per cent reduction in total liftings and six per cent year-on-year reduction in overall freight rates.
Asia-Europe liftings were weak, with headhaul westbound volumes falling by 20 per cent as average utilisation rate fell to only 83 per cent in the second quarter compared to 104 per cent in the same quarter last year.
WORLD SHIPPING
05 August 2015 - 21:33
MOL posts quarterly loss to US$41 million as revenues fall 12pc
JAPANESE shipping giant MOL has reported a quarterly loss of JPY5 billion (US$41 million) for its container business, drawn on quarterly revenues of JPY1.6 billion, which fell 12 per cent year on year.
WORLD SHIPPING
05 August 2015 - 21:33
MOL posts quarterly loss to US$41 million as revenues fall 12pc
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