The three major Japanese container carriers: MOL, NYK Line, and K-Line, which are poised for a merger, all have faith in advancements this year, as indicated in their annual reports published Friday morning.
Japanese shipbuilder Mitsubishi Heavy now follows in Hyundai Heavy Industries' footsteps as the group weighs spinning off shipbuilding operations and plans new partnerships to combat weak demand for vessels in ailing shipping sector.
The three major Japanese container carriers MOL, NYK Line, and K-Line finished the first nine months of the displaced fiscal year 2016/2017 with strained bottom lines in the still-challenging container market.
The three Japanese carriers Nippon Yusen KK, Mitsui O.S.K. Lines, and Kawasaki Kisen Kaisha's decision to merge their container businesses cuts the carriers' debt risks, but observers are waiting to see the real impacts of the maneuver.
The challenging market in several of NYK Line's segments now prompts the Japanese carrier to herald a deficit of USD 1.88 billion for the current quarter. This is primarily attributable to one-off impairments on the fleet value.
Japanese shipping group K Line is seemingly struggling to get out of the wave of rumors surrounding the carrier, including whispers of Maersk Line as a potential buyer for the group's container carrier.
Japanese shipbuilder Mitsubishi Heavy Industries will launch alliances talks with three of the country's other yards in an attempt to strengthen competitiveness in the global market. Overcapacity and zero orders are keeping the sector mired in crisis.
Japan's largest shipping group, Nippon Yusen (NYK), which mainly operates in container and dry bulk, will now look into acquisitions in the offshore sector. The group is prepared to spend hundreds of millions of dollars on investments, reports Bloomberg.