Nippon Yusen Kabushiki Kaisha Revises Financial Outlook
Nippon Yusen Kabushiki Kaisha has upgraded its financial outlook for the fiscal year ending March 2023, projecting higher revenue and operating profits across the board in light of changing market conditions across multiple sectors it serves, inculding containershipping and bulk carriers. In a statemetn the company said:
"The forecast at the beginning of the current fiscal year assumed a decline in demand related to general consumer goods considering lockdowns in China, the turmoil of the situation in Russia and Ukraine, and the acceleration of global inflation. In the Liner Trade business, a gradual decrease in cargo volume and a certain level of decline in spot freight rates were factored in. However, amid ongoing supply chain disruptions, we expect the profit of our equity method affiliate OCEAN NETWORK EXPRESS PTE. LTD. to exceed expectations due to the continuing favorable market conditions resulting from robust shipping demand and other factors. In the Air Cargo Transportation business and Logistics business, overall profitability has improved, supported by solid demand. In addition, due to the favorable dry bulk market and the impact of exchange rates, the Bulk Shipping business is also expected to improve profitability, and therefore, the financial forecasts have been revised upward."
In releasing the revised projection, the company assumes a full year bunker price of $838.24/MT.
