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.