“K” Line reported its profit in the first quarter of fiscal year 2013, ending June 30, 2013, was 6.9 million Japanese yen (about US$70.8 million), up from a net loss of 674 million yen in the first quarter of fiscal year 2012, ending June 30, 2012.
Revenue in the first quarter was 295.7 million yen, compared with 273.6 million yen.
The number of loaded containers transported by “K” Line between Asia and North America during the first quarter rose by about 4 percent quarter-over-quarter, although it moved 10 percent less in Asia-Europe trade. In addition, the carrier transported 30 percent less in inter-Asia and north-south services in the first quarter compared with the previous quarter. Overall, transportation volume in the first quarter was down 10 percent quarter-over-quarter.
“K” Line said its container ship business suffered from freight rate deterioration, particularly in European service routes, in the first quarter, although it predicted that freight rates would be restored to a “certain level” after July, principally in Asia-North America and Asia-Europe routes as the high season in summer gets underway.
The Japanese carrier’s domestic logistics business showed “steady” performance in the first quarter, but its international logistics business suffered from weak demand in the air cargo market. Overall, “K” Line’s logistics business posted a decrease in revenue and net income.
Additionally, “K” Line predicted that its marine transportation of automobiles will continue to be strong worldwide, despite a 5 percent decrease quarter-over-quarter in the number of automobiles transferred by the company in the first quarter. “K” Line has founded a new subsidiary, called “K” Line RORO Services, that will cater to roll-on, roll-off cargo, including new and used construction machinery, agricultural machinery, static cargo and automobiles.
Separately, “K” Line announced that its subsidiary in India has started a “milk run” of automobile parts in Delhi, India, for DENSO India. The subsidiary will provide logistics services for a circuit of several automobile parts manufacturers at a set time, collecting products for “just in time” delivery to customers.