• Economy

Shipping Majors Log Record Profits

REUTERS/Issei Kato/File Photo
Shipping containers are seen at a port in Tokyo, Japan, March 22, 2017.

TOKYO (Jiji Press) — Japan’s three major shipping companies have reported record annual group net profits in the year that ended in March.

All three companies were able to log double-digit growth in their revenues thanks to high shipping fees in the first half of the reporting year amid logistics turmoil due to the coronavirus crisis, according to their financial statements released by Tuesday.

Also behind their bullish earnings were the yen’s depreciation and solid demand from automakers and energy firms.

By company, Nippon Yusen K.K.’s net profit grew 0.3% from the previous year to ¥1,012.5 billion, topping ¥1 trillion for the second straight year. Its consolidated revenue rose 14.7% to ¥2,616.0 billion.

Mitsui O.S.K. Lines Ltd. saw its net profit jump 12.3% to ¥796.0 billion on a 27.0% higher revenue of ¥1,611.9 billion.

Kawasaki Kisen Kaisha Ltd.’s net profit rose 8.2% to ¥694.9 billion along with a 24.5% revenue increase to ¥942.6 billion.

For the current year, the three firms said they expect their net profits to decline 70%-80%, pointing out that their container shipping services, the leading earner, have been slumping since last summer. They also forecast logistics normalization and sluggish cargo movements due to a slowdown in the global economy.

At an online press conference, Takashi Yamamoto, executive officer at Nippon Yusen, offered the view that inventory adjustment in consuming regions would run its course in summer or early autumn to get container cargos going again.