JAPANESE shipping giant MOL has warned of a US$1.45 billion loss for its fiscal year ending March 31, after suffering devastating hit in its container and dry bulk segments.
The company said it would withdraw from certain sectors of the dry bulk market and take steps to rationalise its north-south container business in response to changes in the business climate.
"As soon as the details of each measure are determined, the company will separately announce them in accordance with timely disclosure rules," it said in a statement.
At last week's World Economic Forum in Davos, Maersk Group chief executive Nils Andersen referred to his company's involvement in both shipping and oil as being a "bit of a perfect storm", given the dramatic fall in oil prices and the squeeze on container freight rates, reported London's Loadstar.
Sharing the pain, MOL said that the "containership market remained extremely weak on all routes", particularly from Asia to Europe and South America, but it also referred to a "slump" in intra-Asia trades, which had been robust.
MOL said that it saw no immediate upturn in container markets and expected the "harsh business climate to continue".
Source : HKSG.