Japanese Big Three Bleed Red amid ONE Launch
Japanese shipping majors K Line, NYK Line and MOL reported losses for the first quarter of 2018 fiscal year covering the period from April 1 to June 30.
K Line’s net loss came at JPY 19.2 billion (USD 172 million) for the period spiraling down from the profit of JPY 8.5 billion in the same quarter in 2017. Operating revenues for the period stood at JPY 212.1 billion, also lower when compared to revenues for the three-month period in 2017, which stood at JPY 287.4 billion.
NYK Line booked a net loss of JPY 4.59 billion for the period reversing from a profit of JPY 5.39 billion in the same period in 2017. The company’s consolidated revenues amounted to JPY 464.8 billion, down from JPY 521.7 billion in the same period of the previous fiscal year.
MOL shares a similar fate, posting a net loss of JPY 1.6 billion against a net income of JPY 5.2 billion a year earlier.
Recorded revenue of JPY 304.4 billion was also lower when compared to corresponding JPY 403 billion revenue from last year.
All three companies ascribed their losses to the launching of Ocean Network Express (ONE) in April as well as the rise in oil prices. As disclosed, the costs related to ONE’s launching were higher than expected and signaled the termination of the trio’s container businesses.
On the other hand, dry bulk businesses of the trio fared much better, reporting black ink amid strenuous cost cutting efforts and overall improvement of the market.
Source: World Maritime News
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