Japanese Big Three start new joint venture ONE in good financial shape
JAPANESE shipping giant MOL declared a 34.9 per cent year-on-year’s profit increase to JPY29.2 billion (US$267.07 million) drawn on revenues of JPY1.24 trillion, up 12.8 per cent.
This may well be the second to last time Japan’s Big Three container lines announce their financial results separately. On April 1 they will combine their container businesses into a new joint venture company called Ocean Network Express, to be know as ONE.
In its containership division, MOL narrowed its segment loss from JPY26.1 billion in the first nine months of FY 2016 to JPY372 million year on year, despite segment revenues surging 21.1 per cent to JPY567.4 billion.
“On the Asia-North America routes, demand continued to proceed firmly as cargo volumes from Asia reached a record high,” MOL said of the results.
“On the other hand, upward momentum with respect to spot freight market was limited, even during the busy summer season, as the supply and demand balance did not tighten due to increased vessel supply as a result of the deployment of new containerships, etc,” said the company statement.
“On Asia-Europe routes also, upward momentum with respect to spot freight rates was marginal despite the highest ever cargo volumes from Asia,” the carrier said.
“The backhaul cargo volumes from Europe to Asia have also increased since the beginning of the year, which led to a rise in the spot freight market and greatly contributed to route profitability.”
As reported here yesterday “K” Line, one of the Big Three Japanese ocean carriers also returned to profitability, having declared a net profit for the three quarters ending in December 31 of US$82.2 million, after a year-on-year loss of $54.5 million in 2016. Profit in 2017 was drawn on revenues of $7.8 billion, up 16 per cent.
“K” Line container shipping revenues were up 20.1 per cent and accounted for nearly half the sales made in the nine-month period. with dry bulk shipping taking up most of the other half.
NYK Line was also back in the black, declaring an operating profit for the three quarters ending in December 31 of JPY24.8 billion (US$228.3 million), after a year-on-year loss of JPY226.09 billion in 2016. Profit in 2017 was drawn on revenues of JPY1.6 billion, up 15.3 per cent.