Japan's leading maritime shipping companies will likely see their earnings improve significantly this fiscal year as major industrialised economies gradually recover.

Nippon Yusen and Mitsui O S K Lines are on course for a 30 percent surge in pretax profit to about US$680 million in the year through next March, according to Nikkei Report.
Kawasaki Kisen Kaisha's profit is expected to climb just over 10 percent to nearly $342 million.

The companies are enjoying greater demand for their container shipping services, which transport all manner of consumer goods, from everyday products to home electronics, from Asia to the US and Europe. A steady stream of cargo is also expected to keep flowing to emerging markets such as China.

Container shipping volume is often taken as a leading indicator of economic health due to its sensitivity to consumption trends in the markets of destination.

Nippon Yusen anticipates container shipping volume from Asia to tick up about five percent for North-America-bound cargo and about three percent for vessels heading to Europe this fiscal year. MOL¡¯s US-bound volume will also climb. And there are signs that freight charges may recover after sustained declines.

Demand is robust for natural resources shipping services as well. Bulk freighters carrying iron ore, coal and other cargo to China from such places as South America and Australia are operating at high levels. Freight charges for large ships in particular will likely climb about 20 percent on the year.

The shipping volume for vessels that transport automobiles is seen remaining relatively unchanged, however, as many carmakers move production overseas.

The three shipping companies are expected to experience revenue growth in fiscal 2014, with Nippon Yusen's sales seen rising four percent to around $22.5 billion. Their use of energy-saving ships and larger vessels will also contribute to fatter profits.

Nippon Yusen, which may book losses in relation to an automobile shipping cartel case, is likely to report a 20 percent rise in net profit to around $342 million.