NYK LINE has released its financial results for the first quarter of 2024-25 fiscal year (Q1 2024), posting robust increases.
The Japanese shipping line saw a 14.8% increase in revenue for the period ending June 30, 2024 when compared to the same period in 2023, to over ¥650 billion (yen).
Divided by sectors, the biggest decrease was seen in NYK’s liner trade, which saw a 21% decrease compared to Q1 2023.
NYK attributed this to significantly higher market levels for their container shipping division than in the same period last year, due to tight supply-and-demand conditions caused by the situation in the Red Sea and rising cargo demand.
In their terminal division, it said handling volumes at overseas terminals declined year on year due to the sale of shares of an affiliate at a terminal on the North American west coast at the end of September 2023.
There were some positives within NYK’s Liner and Logistics sector however; air cargo transportation saw a nearly 26% increase from Q1 2023, with cargo volumes, primarily from Asia, Europe, and the US remaining strong.
In NYK’s dry bulk sector, results were solid, with Q1 2024 seeing a 21% increase from Q1 2023.
Market levels increased year on year for NYK’s capsize vessels, supported by strong shipments of iron ore cargoes from Brazil, which was less affected by the rainy season.
For its panamax size and smaller carriers, revenues increased year on year as the supply-and-demand conditions tightened due to the coincidence of peak soybean shipments from Brazil, and the active loading of coal inventories in China and India for the summer season.
Revenue and recurring profit for NYK’s automotive sector also remained strong. Despite ongoing challenged caused by conflict in the middle east, NYK says it worked to optimize vessel deployment plans to meet firm demand for finished car transport.
As a result, the number of vehicles transported remained strong year on year, but was affected by a weak yen and other factors.
In its energy business, NYK said market levels declined year on year for very large crude carriers, with vessel utilisation declining due to the increased number of vessels docked. Market levels also declined year on year for its very large gas carriers.
Overall, NYK says its energy business slightly increased revenue, with a14.9% increase in Q1 2024, but decreased profits year on year.
