[010217.EN.BIZ] Japan's No 2 of Big 3 'K' Line Posts US$468.5 Million Loss Over 9 Months

JAPANESE shipping giant "K" Line posted a net loss of JPY54.5 billion (US$468.5 million) in the first nine months of its fiscal year, drawn on revenues of JPY760.93 billion, down 22.1 per cent year-on-year.

"K" Line, the second of Japan's "Big 3', behind MOL, but ahead of NYK, blamed losses on low freight rates and over supply of shipping that has plagued the market for the better part of a decade.

The three Japanese carriers plan combine container operations by forming a joint venture this July, and begin operating a joint service April 1, 2018.

"Although full market recovery is still expected to take some time, we expect a rise in resource prices and a gentle recovery in the global economy will gradually push freight rates out of the historical bottom of the market," said the "K" Line statement.

"In the nine months of the fiscal year ending March 31, the US economy expanded gradually amid a firm employment environment and solid consumer spending," the statement continued.

"The European economy after passing the temporary period of confusion due to the UK decision to exit the EU recovered a sense of stability," it said.

"The Chinese economy managed some respite from slowing growth supported by an expansion of government public investment, but generally remained flat.

"In Brazil and other emerging countries, rising resource prices marginally boosted some, but the impact of such price rises was uneven across the various countries, and the overall tempo of recovery in the emerging economies weakened," said "K" Line.

Source : HKSG.