NYK sees its first unprofitable year in 23 years

Japanese shipping major NYK Line is predicting its first unprofitable year in 23 years, forecasting a loss of US$53 million, reports Bloomberg.
The shipping line posted a first-quarter loss of 19.9 million in revenue, a decline of 44 per cent to $4 billon.

The global downturn has choked demand for furniture, building materials and consumer electronics in the US and Europe, driving down shipping rates, said the company. In response, NYK has slashed its fleet expansion by 15 per cent and laid up containerships, said the report.

"It's tough all round for the shipping lines," Osuke Itazaki, an analyst in Tokyo at Credit Suisse Group, told Bloomberg. "The container segment is suffering and even though the dry-bulk market is rebounding it's still below last year's levels."

Source: Transportweekly