K Line profit up, despite volume drop

The company attributed the 67% boost in profit to a correction of the Yen, a drop in the price of bunkers and a hike in capesize earnings.

While the group's container operations saw a fall from a minor profit to a JPY1.1bn loss, K Line's bulk shipping segment recorded an 18.6% rise in operating revenues and a 266% growth in profit to JPY34.3bn.

An efficiency drive and the capesize boost from Chinese iron ore restocking brought fortune for the bulk outfit, as weak markets and streamlining caused a 5% drop in container volumes as freight rates fell further for the container business.

"We will continue our efforts to improve profitability by reducing ship and business operating costs throughout tonnage adjustment in winter, enhancement of slow steaming navigation, and further implementing cost cutting measures globally," the company commented on its container efforts.

Despite the sharp rise in earnings, K Line's dry bulk outlook was reserved. "In dry bulk business, we expect the freight rate market maintains steady developments for the time being under better supply and demand balance," the group's earnings release stated.

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