In an interview with Nikkei, the leading Japanese business daily, Tadaaki Naito, the president of Nippon Yusen Kaisha (NYK), one of the world’s largest shipping lines, has warned there will be no turnaround in shipping fortunes until 2018 at the earliest.
NYK will face a “tough earnings climate through the year ending March 2018”, Naito predicted.
NYK suffered a Y195bn ($1.87bn) extraordinary loss for the first half.
“The impact of contracts signed during the market slump will be felt beyond the second half of the fiscal year,” Naito added.
Come the start of fiscal 2018, Naito said the company’s offshore resource development and LNG carrier sectors would help drive revenues in a more positive direction.