Japan's shipping group Mitsui OSK Lines (MOL) announced a net income increase of 6.3 per cent to JPY121 billion (US$1 billion) in the 2006 financial year from JPY114 billion the year before.

But the company also reported that in container shipping profit fell 91.6 per cent from JPY37.1 billion to JPY3.1 billion year on year while revenue only shrunk 16.6 per cent from JPY490 billion in 2005 to JPY571 billion in 2006.

While a weak yen and higher earnings from bulk shipping mitigated results, falling freight rates and higher bunker charges received blame for losses. MOL's bulk shipping gains resulted in an operating profit increase from JPY135.3 billion to 163.5 billion, a rise of 16.6 per cent.

MOL moved 2.85 million TEU worldwide in its 2006 fiscal year ending March 30, a 21.2 per cent year-on-year increase and the shipping line experienced a 74 per cent vessel utilisation, a fall of one per cent.

But MOL enjoyed a 90 per cent utilisation in the Asia-America trade, moving 492,000 TEU. On Asia-Europe routes, MOL carried 413,000 TEU westbound at 97 per cent vessel utilisation and 230,000 TEU eastbound at 57 per cent utilisation.

"The Europe-South Africa route for which trade rights were acquired from AP Muller Maersk Group in February 2006 contributed to our trade volume, resulting in a great increase of container volume from the previous year and an increase in revenue," said a MOL statement.

For 2007, the company saw a 7.5 per cent increase in profit to JPY130 billion on the back of an 8.4 per cent revenue increase to JPY1.7 trillion.