MOL President Koichi Muto said the Japanese ocean carrier must reduce costs and “shift to a business structure that is not reliant on a recovery in freight rates.”
In his new year’s message to staff, Muto said MOL’s bulk business continues to lose money because of overcapacity that has reduced dry bulk and tanker rates and left the company with idle ships.
He said growth from emerging countries should bolster rates in the second half of 2013, but that Chinese shipyards and others continue to expand. He said that to cope, MOL must reduce costs and maximize revenue. He cited changes in the carrier’s container shipping unit.
“In the containerships business, despite a tough environment, we managed to restore freight rates in the first half of the previous year through measures such as adjusting our fleet size through a realignment of alliances, reducing services and restraining ourselves from excessive pursuit of high space utilization. This example shows that we do not have to remain at the mercy of the business environment.”