Japanese shipping giant "K" Line suffered a quarterly year-on-year revenue loss of 45 per cent to US$1.9 billion and a net profit loss of minus $155.08 million in the first quarter of its financial year ending June 30, the Shipping Gazette reported.
"In the US economy, despite signs of bottoming out from some economic indicators, the housing market has remained sluggish and car sales continued their decline on a year-on-year basis," said a "K" Line statement.
"In European countries, both capital and investment and consumer spending maintained their downward trend and the Japan economy corporate performance significantly worsened, especially in exported oriented industries," the statement continued.
Meeting the situation, "K" Line Group, (Kawasaki Kisen Kaisha), said it has focussed on counter measures, including cost reductions and the curtailment of capital investments. "However, such measures were unable to counter the adverse effects of the sharply and significantly deteriorating business environment," said the company.
In the container business, "K" Line noted that the Asia-North American continued its decline and as a result the number of loaded containers on the trade lane dropped 12 per cent year on year. On the European routes, container movement was sluggish and the number of laden containers fell nine per cent. As a result "K" Line laden containers fell 15 per cent year on year, said the statement.
"In the container business, cargo movement is expected to continue to stagger," said the company statement. "The company plans to normalise freight rates on principal service routes during the summer peak season, in addition to promoting rationalisation though adjusting the scale of operations and cost reductions."