JAPANESE shipping giant NYK Line is back in the black, declaring an operating profit for the three quarters ending in December 31 of JPY24.8 billion (US$228.3 million), after a year-on-year loss of JPY226.09 billion in 2016. Profit in 2017 was drawn on revenues of JPY1.6 billion, up 15.3 per cent.
"Conditions in the maritime shipping market were positive overall during the nine-month period of the fiscal year ending March 31," said the NYK statement accompanying the results.
"In the container shipping market, an upswing in spot freight rates stalled somewhat as the total supply of tonnage remained at similarly high levels as the previous year," it said.
But NYK said that even then, shipping traffic was brisk on the back of robust demand for container shipments.
In the container shipping market, NYK Line and four other companies have begun offering new services as THE Alliance. Under THE Alliance, efforts have been made to boost the efficiency of various services while maintaining and enhancing user - friendliness and competitiveness.
"By implementing measures for cutting freight costs, particularly the efficient operation of containerships, the group improved profitability and its resistance to market fluctuations," said the statement.
"Meanwhile, overall handling volume at container terminals in Japan and around the world increased year on year. Owing to these factors, results in the liner trade segment as a whole improved substantially, with the segment posting a profit and higher revenues than in the same period of the previous fiscal year.
NYK Line said it decided to integrate its container shipping business (including its terminal business outside Japan) with those of "K" Line and MOL as a means of boosting competitiveness in the market and ensuring stable and sustainable container shipping operations.
Following the integration, Ocean Network Express (ONE) was established in July and all legal procedures necessary for the commencement of new services by ONE have been completed in each of the countries and regions in which it will operate.
Other aspects of the business integration have also been proceeding smoothly, and the three parent companies are now working together to prepare for the commencement of services in April 2018.
Source: SchednetPrevious Next
We Have Increased & Enhanced Our Global Presence: Mr. Suresh Sinha, MD, IRClass
India Tanker Shipping Trade Summit 2018