Major shipping firms log record 1st half profits

Jiji Press

12:00 JST, November 7, 2022

TOKYO (Jiji Press) — Japan’s three major shipping companies have reported record April-September group net profits as freight fees stayed at high levels.

In the first half of fiscal 2022, Nippon Yusen K.K.’s net profit jumped 71.7% from a year before to ¥706 billion.

Mitsui O.S.K. Lines Ltd. saw its net profit grow 118.9% to ¥601.5 billion, and Kawasaki Kisen Kaisha Ltd.’s net profit rose 129.8% to ¥565.4 billion.

Their profits were partly pushed up by the strong performance of a containership operator jointly held by the three companies. They were also aided by the yen’s weakening.

Demand for container shipping services slowed in August and later, pushing down short-term freight fees. But this was more than offset by long-term contracts that were concluded with high shipping fees.

All three companies revised up their earnings estimates for the full year to next March, projecting record group net profits.

As demand for shipping services is slowing due to rapid inflation in the United States and Europe, however, the three companies’ net profits in the second half, which started last month, would be substantially lower compared with the levels a year before and in the fiscal 2022 first half.