While "K" Line said the first half was better than expected, the company cautioned that the slowdown in the global economic outlook could lead to the deterioration in demand and that the "business environment remains critical".

Said "K" Line: "Our important task is to maximise returns to our shareholders while maintaining necessary internal reserves to fund our capital investment and strengthen our financial position for the sake of sustainable growth."

"K" Line is Japan's third-largest shipping company after NYK Line and MOL. The three companies are joint owners of Ocean Network Express (ONE), the world's sixth-largest container carrier.

"ONE overall recorded a year-on-year increase and turned a profit," "K" Line said. Other "K" Line containership business had a decline in revenue but a narrower loss.

"K" Line said its fleet has shrunk since the beginning of the fiscal year, from 520 ships in March to 486 in September.

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