Japan's second largest carrier, NYK, has posted a first half operating profit of JPY17.8 billion (US$224 million), drawn on a 3.6 per cent revenue rise to JPY944 billion against last year's half year loss of JPY9.6 billion, according to the Shipping Gazette.
But NYK still suffered a net loss of JPY4.1 billion against the net loss of JPY12 billion for the same April-September period last year.
NYK said it was able to limit the overall expenses by only 0.8 per cent year on year to JPY6.4 billion due to the implementation of slow steaming and other cost-cutting measures.
The recurring operating profit for the April 1-September 30 period was JPY13 billion, successfully reversing the recurring loss of JPY15.1 billion recorded one year earlier.
For the container trade, NYK said an improvement in the supply-demand imbalance was seen in past two quarters, leading to restorations of freight rates, particularly on European and Latin America routes.
"Shipping companies furthered efforts to restructure routes and consolidate fleets to cope with sluggish shipping demand caused by economic slowdown in Europe and other regions, along with a rise in newbuilt tonnage of large-sized container vessels," said NYK in a statement.
The Japanese carrier said it was able to expand Asian routes to meet increasing demand, but rationalised its European loops under the G6 Alliance.
In order to reduce fuel cost and enhance ship efficiency, NYK said it carried out various measures, such as "optimising route planning through the use of weather forecast data and optimising vessel management through the use of vessel operational data."
And to further reduce the aggregate fixed costs, NYK returned and scrapped more "superannuated vessels" in the period.
As a result, revenues for containerised trade increased to JPY229.2 billion, up 3.9 per cent from JPY220.7 billion recorded in the same period last year. An operating profit of JPY400 million was experienced, significantly reversing the operating loss of JPY15.5 billion recorded one year earlier.
This helped reduce the recurring loss a great deal to JPY1.7 billion in April-September period from a recurring loss of JPY17.3 billion in the same period 2011.
Looking ahead, NYK said the operating environment for the shipping industry remains "severe" due to "a tepid US economy recovery, a weakening European economy, slowing economic growth in China and India, and flat growth in other Asian economies."
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