K Line reports reduced earnings

Kawasaki Kisen Kaisha reported consolidated net income of 40.7 billion yen ($447 million) in the nine months ending Dec. 31, compared to 68 billion yen ($759 million) in the same 2007 period.

   Revenue for the nine-month period was 1.05 trillion yen ($11.6 billion) compared to 985 billion yen ($11 billion) in the same 2007 period.

   The company noted its results reflect the global financial crisis.

   In the environment surrounding the shipping industry, pressure on earnings has become increasingly conspicuous due to negative factors including a sharp decline in dry bulk freight rates, a decrease in containership transportation, rising fuel oil costs and the stronger yen, which has resulted in a decrease in Japanese exports.

   The company said that in the period loaded containers from Asia to North America fell 15 percent and from North America to Asia were off 11 percent.

   On the North Europe/Asia, the company noted it had bucked the trend. While overall cargo movements have entered a slowdown, but K Line said its overall cargo movements jumped 23 percent as a result of launching large containerships.

   On the other hand, in the Mediterranean/Asia trade, it said it has promoted rationalization and that loaded container movements are off 5 percent.

Source: American Shipper