NYK black in black with modest profit as revenue rises 14pc
JAPAN's NYK Line was back in the black in the first six months of its financial year with a net profit of JPY6.29 million (US$55,585), having recovered from a year-on-year loss of JPY231.81 million with this year's result drawn on revenues of JPY1.06 billion, up 14 per cent.
"Conditions in the maritime shipping market were positive overall during the first half of the fiscal year," said the company statement.
"In the container shipping market, while the supply of tonnage remained at similarly high levels as in the previous fiscal year, spot rates stayed mostly favourable on the back of brisk shipping traffic." said NYK.
"NYK and four other companies began offering new services as THE Alliance from April 1. THE Alliance increased its competitiveness by forming an extensive network and a full range of non-stop service loops for Asia and North America, Asia and Europe, Asia and the Middle East and transatlantic routes.
"NYK worked to limit fleet and operating costs by continuing efforts to boost cargo-loading efficiency, switch to highly efficient vessels each with a capacity for 14,000-TEU and optimise vessel assignment and economic performance in accordance with the circumstances of shipping routes.
"Owing to these factors, results in the liner trade as a whole improved substantially with the segment posting a profit and higher revenues.
"As previously announced, NYK has decided to integrate its container business, including its terminal operations outside Japan with those of 'K' Line and MOL."
Following the integration, Ocean Network Express Pte Ltd (ONE) was established as an operating company in Singapore on July 7. Preparations are now underway for ONE to commence services from April 1.
In other segments, air cargo dealt with higher fuel, maintenance and mechanical costs, but revenues improved on the back of a brisk trade and rising rates, the company said.
Air freight logistics performance was disappointing as was ocean freight logistics to a lesser extent, resulting in a loss in profit, but a slight increase in revenue.
Apart from a brisk trade to North America, car shipments slowed, with year-on-year increases being noted overall.
Dry bulk - iron ore, coal and grain - was up, but there was excessive tonnage in the market with more ships being commissioned than being scrapped. NYK made cost saving by reducing ballast voyages by combining cargoes and more efficiently assigning vessels.
"Taken together the bulk shipping segment posted a profit and an increase in revenues compared to the first half of the previous fiscal year," said the NYK statement.