JAPAN`s third largest carrier, "K" Line, posted an operating profit of JPY12.1 billion (US$156.6 million) against a JPY18.4 billion loss in the same period last year
Despite a 9.9 per cent growth in operating revenue to JPY546.2 billion, "K" still posted a net loss of JPY1.1 billion in its April-September first half, though much reduced from the JPY18.6 billion loss suffered last year.
In the container trade, NYK experienced an operating profit of JPY3.8 billion in the said period, seeing significant improvement from an operating loss of JPY16.8 billion one year ago.
Operating revenues for containership segment from April to September were JPY271.1 billion, up 9.9 per cent year on year from JPY246.6 billion posted in the same period last year.
The number of loaded containers during the period increased 21 per cent year on year on both eastbound and westbound of transpacific trades, and four per cent on Asia-Europe routes.
"K" Line said it trimmed unprofitable routes, resulting in a 10 per cent decrease in the number of loaded containers on north-south routes, "but with about seven per cent increase compared to the same period of the previous year in the overall number of loaded containers".
The carrier saw a restoration of freight rates, especially on Asia-Europe and Asia-US routes.
NYK said it had deployed the new mega ships to replace the old ones to enhance "navigation efficiency" and applied slow steaming to reduce energy costs.
But the carrier said the industry had faced a difficult environment in April-September period. "The global economy was in a slump: Europe was stagnant amid the prolonged sovereign debt crisis, the US recovery was decelerating in a persistently harsh employment environment, and the yet-growing emerging economies including China, India and other countries began to slow down in the face of the stalling European and US economies," said the company statement.
Commenting on the Japanese economy, "K" Line said it is slack now due to the "decelerating overseas economy" despite it "enjoyed a mild recovery on the back of post-disaster reconstruction and other demand" earlier.
Looking ahead, "K" Line expects steady cargo movements for North America-bound freight as "some signs of the US housing market hitting bottom." For Europe-bound trades, the carrier forecasts slow movements due to the persistence of EU debt crisis.
As demand continues to decline, "K" Line said it will cut back operations and the relative costs, expand slow steaming and apply more rigid measures to further reduce cost.