Japan Big 3 suffer in April-June period
Japan's big three container lines sustained collective operating losses of nearly $265 million in their fiscal first quarter ending June 30.
'K' Line's containership business suffered a $96.9 million loss in its fiscal first quarter, compared to a $100 million operating profit in the same quarter in 2010. Container shipping revenue was flat in dollar terms, at $1.3 billion, but fell 7 percent in yen terms, due to the strengthening of the Japanese currency.
'K' Line's revenue fell 3.6 percent to $3 billion, while the group sustained a $122.6 million loss in the quarter, compared to an operating profit of $260.1 million in fiscal first quarter of 2010.
'K' Line said its container volume in its first quarter fell 1 percent, due primarily to the impact of the March earthquake in Japan.
MOL's first quarter container shipping revenue fell 4.8 percent in yen terms to $1.6 billion, while the container-shipping division slumped to a $62.2 million loss from a $101.5 million profit in the first quarter of 2010.
MOL group revenue fell 12.1 percent in yen terms to $4.3 billion in the quarter. The group sustained an operating loss of $111.9 million in the fiscal first quarter, compared to an operating profit of $439 million in the same period in 2010.
MOL said its container volume on the eastbound transpacific fell 9 percent year-on-year, with the carrier saying annual freight rate negotiations were 'unsuccessful.' Meanwhile, westbound Asia/Europe volume increased 13 percent in the quarter, but freight rates were 30 percent off their high from peak season 2010.
NYK Line's container-shipping business sustained a $105.7 million loss, compared to a $132 million profit in 2010. The company's container shipping division revenue fell 12.2 percent in yen terms to $1.3 billion.
NYK group revenue increased 11.3 percent in yen terms to $5.4 billion, but the group suffered a $126.9 million operating loss, compared to a $451.9 million profit in the fiscal first quarter of 2010.