Shipping Woes to Push NYK Line’s Loss to USD 1.9 Bn
- Business & Finance
Japan’s shipping major Nippon Yusen Kabushiki Kaisha (NYK Line) expects to see a record loss of JPY 195 billion (USD 1.9 billion) for its shipping and air-cargo businesses, according to data provided by the company.
The one-time loss would reflect the decrease of value in the company’s shipping assets as a direct result of the global overcapacity, which led to a drop in freight rates, Bloomberg reports.
Additionally, the company said that it is considering a change in its dividend payout, which would be revealed by the end of October.
In July 2016, NYK Line lowered its full year outlook as it posted a first quarter loss of JPY 12.78 billion, compared to a profit of JPY 43.06 billion seen in the same period a year earlier.
The Japanese giant is not the only shipping line severely hit by the current depression in the shipping industry, as its compatriot shipping firms Kawasaki Kisen Kaisha (K Line) and Mitsui O.S.K. Lines (MOL) also lowered their full year outlook amid the prolonged depression in the shipping market.
Earlier this year, the devastating conditions claimed their first victim when the South Korean container carrier Hanjin Shipping decided to file for court receivership.
The ailing firm opted for the move after its creditors, led by KDB, said they would not provide additional financial support to Hanjin starting from September 4.
World Maritime News Staff