Major shipping firms log record 1st half profits

Yokohama Port
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.
"Business" POPULAR ARTICLE
-
Japan’s Nissan Motor to Cut Nearly 2,000 Jobs in U.S. Plants; Will Reduce U.S. Vehicle Production by About 25%
-
Electric Plane to Ship Cargo Between Kyushu Cities in Trial Run, in Hopes of a Greener Delivery Industry
-
Fuji Media Holdings Revises Down Its Net Profit Forecast by 66%; Advertising Revenue Projected to Plummet Following Scandal
-
Japan’s Nikkei Stock Sheds over 1,000 Points in Morning (UPDATE 1)
-
Mitsubishi Motors Has Begun Considering Not Joining Merger Talks with Honda, Nissan; Automaker will Strengthen Cooperation with Both Companies
JN ACCESS RANKING