In the containership business, cargo on the
Asia-North America services recorded an 11 per cent increase year on year,
while cargo volume loaded on the Asia-Europe services recorded an increase of
two per cent, said the company statement accompanying the annual results.
"Cargo volume loaded on the north-south services
also increased by seven per cent year on year, while the intra-Asia service was
the same level year on year as the result of service restructuring focused on
profitability, said the "K" Line statement.
Overall cargo volume increased six per cent
year on year. "Although the freight rate market turned favourable in the
final stretch of the fiscal year, reflecting steady cargo movements, the gap
between vessel supply and demand is yet to be fixed and reduced revenues year
on year led to a loss larger than the previous year," it said.
During the fiscal year ending March 31, the global economy
was a year of great changes influenced by factors, such as concerns about a slowdown
in Chinese economic growth, confusion in financial markets due to the UK's vote
to leave the EU, and establishment of the new government in the
US, said "K" Line.
"The US economy made solid movement,
despite sluggish start at the beginning of the fiscal year, as expectations of
fiscal expansionary policy being brought in the new government saw an uptick in
private consumption and corporate investment activities.
"Conversely, the European economy was
temporarily in confusion due to the UK's vote to leave the EU, but it gradually
settled, with a slight recovery in the latter half of the year, led by an
increase in private consumption due to an improvement in Employment
figures," said "K" Line.
The Chinese economy was quiet, mainly buoyed
by infrastructure investment, in spite of a slowed rate of growth. Also, the
agreement between major oil producing countries to reduce production saw a rise
in crude oil prices, and other resource prices firmed; however, the economic
recovery of developing nations, and resource-rich nations in particular will
take some time.
Source : HKSG.
