Japan's big three shipping companies to slow expansion plans

Japans leading shipping companiesNippon Yusen Kabushiki Kaisha (NYK), Mitsui O.S.K. Lines, Ltd. (MOL) and Kawasaki Kisen Kaisha, Ltd. (“K” Line)have slowed their expansion plans for new ships in the sector. Alternative revenue earning sources are being sought in the heavylift sector by K Line, while MOL continues to boost its dry bulk capacity with a series of 320,000 dwt ore carriers and, as a diversion, NYK is making a foray into the transportation of biofuels. Having achieved their best results ever in 2007, all three companies saw a considerable falling off in first quarter 2008 results. They all agree though that, for the time being, the picture will only get worse. Financial results for the first quarter April to June 30 saw K Line fare the worst as profits fell 16%. NYK is forecasting a loss of ¥25 billion (US$237.94 million) by March 31, 2009 for its fleet of containerships. Only MOL is predicting that it can hold on to a profit of ¥7 billion (US$66.62 million) since it is thoroughly reorganizing the way its container fleet works. (August 27, 2008)