Japan's big three narrow losses with stronger rates and more volume

Time:2012-08-02 Browse:13 Author:RISINGSUN
NIPPON Yusen Kaisha (NYK Line) has announced that it has reduced its losses in the first quarter of the year compared to the same three months last year, in line with results recently announced by two of its rivals MOL and "K" Line.

NYK announced that first quarter revenue increased 6.7 per cent to US$5.9 billion and operating income was back in the black at $85 million, compared to a loss of $133 million in the same period last year, marking a return on sales of 1.4 per cent.

The shipping line reported a net loss of $16.4 million, however, this was a great improvement on the loss of $91 million for the same period in 2011. The carrier said that its loss was down to the valuation of net securities. Its liner trade revenue was up by 6.8 per cent to $1.5 billion.

Said NYK: "Revenues in the liner trade segment improved significantly as a result of a recovery in freight rates. The supply-demand balance improved due to carriers` efforts to rationalise vessel operations, which resulted in a significant improvement in freight rates, particularly on European routes. The rate recovery also penetrated the intra-Asia routes, where containerised cargo shipments have been vibrant, as well as the South American routes."

The three Japanese ocean carriers have seen their net losses for the first quarter of their fiscal years fall significantly compared to the same period last year on the back of stronger freight rates and increased liftings.

The country`s largest container carrier, MOL, saw its revenue jump 8.5 per cent year on year to hit $4.8 billion for the three months ended June 30, and while it recorded an operating loss of $6.3 million and a net loss of $63.3 million, these are smaller than operating losses of $110 million and net losses of $102 million recorded in the same period in 2011, respectively. Its return on sales was minus 0.1 per cent.

"K" Line announced that its fiscal Q1 revenue soared 12 per cent to $3.4 billion and its operating income was $51.3 million, compared to a Q1 2011 loss of $125 million. Its return on sales reached 1.5 per cent. Its net loss of $8.5 million was much smaller than the $47 million loss recorded for the first quarter last year.