Mitsui OSK Lines has taken action to try and hemorrhage losses stemming from its huge exposure to the depressed dry bulk trades. The Japanese line is establishing two new business units in what is a very significant restructuring for one of the world’s largest shipowners.
“MOL will restructure the dry bulk business divisions and establish the Dry Bulker Business Unit to most effectively implement business structural reforms to optimize the fleet portfolio and make more efficient use of management resources,” the company said in a release.
In addition, MOL will establish an Energy Transport Business Unit as an organisation that manages business divisions by ship type, to meet diversified customer needs in energy-related industries. As such, the move separates iron ore and coal into separate divisions.
Last month, MOL said it would carry out structural reform of its dry bulk and container divisions as it warned of severe losses – to the tune of $1.45bn – for the current financial year, which ends in April. The revised figure comes despite MOL managing a $110m profit in the first nine months.
On dry bulk, MOL commented: “In the dry bulker business, the market is deteriorating to a new record low due to the imbalance of fleet supply and demand, along with stagnant cargo trade resulting from the slowdown in China’s economy since last fall.”
MOL will cut the number of capesizes trading on the spot market and withdraw excess tonnage in the panamax and handy sectors.
