AsiaContainersDry CargoTankers

NYK, MOL and K Line all revise downwards full year forecasts

Japan’s so called Big Three shipping lines have all revised downwards their full year forecasts today reflecting the continued dire freight rates in most sectors. Nippon Yusen Kaisha (NYK), Mitsui OSK Lines (MOL) and Kawasaki Kisen Kaisha (K Line) issued their first quarter results today – a mixed bag – and at the same time advised of changes to their full year forecasts.

Most notable was NYK, which plunged to a first quarter loss and has now indicated it will make a full year loss of Y15bn rather than the Y15bn net profit earlier forecast. The poor box and dry bulk freight rates combined with the appreciation of the yen and rising bunker prices were all cited as rationale for the Y30bn swing.

K Line, also in the red in the first quarter, warned its full year loss will be worse than NYK’s and worse than originally forecast. K Line is now bracing for a full year loss of Y45.5bn, some Y10.5bn worse than originally predicted in April, the start of the Japanese financial year. In addition to the same reasons NYK gave for this worsening performace, K Line also cited the deteriorating car carrier market.

Finally, MOL, the only line of the Big Three to post a profitable first quarter, also took time today to amend its full year forecast. Unlike the other two, MOL still predicts a profitable year, albeit that at Y15bn, it is now likely to be Y5bn than originally forecast.

Tags

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.
Back to top button
Close
Close