One of the world’s largest shipowners Nippon Yusen Kaisha (NYK) returned to the black in the first quarter ended 30 June 2017 and has maintained its full year profit forecast.

NYK reported a profit of JPY5.4bn ($48.6m) for the first quarter ended 30 June 2017 compared to a loss JPY12.8bn in the corresponding period in the previous year. Revenues for the period were JPY521.7bn up from JPY470.8bn in the previous year.

The Japanese shipowner described markets in the in the first quarter as mixed with favourable spot rates for container shipping and moderate recovery in the dry bulk market due to excess tonnage.

Looking ahead NYK retained a forecast of JPY5bn profit for the year ended 31 March 2018 as a whole.

“In the fiscal year ending 31 March 2018, the management of NYK Line expects freight rates to remain stable in the container shipping market, supported by ongoing brisk shipping traffic,” it said.

Looking at the dry bulk sector NYK commented: “The dry bulk shipping market is currently undergoing a period of adjustment, but market conditions are projected to pick up steadily from the summer.”

For tankers it saw better times ahead later in 2017. “Meanwhile, the liquid transport market is forecast to recover from the third quarter of the fiscal year under review when it enters a period of demand for shipments by tankers, and the company expects to continue securing stable profits from its LNG tanker and offshore businesses.”

Source:seatrade-maritime.com