[060220.EN.SEA] NYK Line Back in Black, Reporting Satisfactory Box Showing From ONE

JAPAN's NYK Line posted a net profit of JPY18.7 billion (US$ million) in the last nine months of 2019 after sustaining an JPY8.7 billion net loss the year before despite 2019 revenues falling 9.5 per cent to JPY1.2 trillion.

In the container shipping, which is run by Singapore-based Ocean Network Express (ONE) as a joint venture together Japan's "K" Line and MOL, the company maintained steady overall liftings and utilisation."Liftings increased on the major North America and Europe trades, as well as the intra-Asia trade. However, in the third quarter, liftings stagnated as a result of seasonally slower demand and the impact of the trade problem between the US and China," said the NYK statement accompanying the results.

"Although freight rates were higher in the first and second quarters compared to the same period of the previous fiscal year in the North America trade, in the Europe trade, due to deterioration in the supply and demand balance, rates did not rise during the summer peak season and were sluggish," said NYK.

In the third quarter, freight rates deteriorated in both the North America and Europe trades compared to the same period of the previous fiscal year. On the other hand, with the aim of improving profitability, synergistic effects of the business integration were further accumulated and improvement measures such as optimising the cargo portfolio continued to be executed.

Although the total handling volume at terminals in Japan increased, the total handling volume at overseas terminals declined due to the impact of the sale of the equity share in the stevedoring subsidiary located in North America in the previous fiscal year, the statement said.

Source : HKSG.