The ocean carrier — which launched in April and comprises “K” Line, MOL, and NYK Line — said in its half-year earnings report that it collectively expects to lose $310 million in the first half of the year, on revenue of $5.03 billion.
The new route connects the South Korean port of Busan and Russia’s port of St. Petersburg and involves the port of Vladivostok as a transit hub and then the Trans-Siberian Railway to move container cargo to Russia and other European destinations.
The JOC Top 50 Global Logistics Providers, published on JOC.com on April 13 and in the April 16 Journal of Commerce magazine, misstated the annual revenues for Nippon Express.
“Trade wars never produce winners. Governments must remember that prosperity comes from boosting their trade, not barricading economies,” the International Air Transport Association said.
NYK attributed Ocean Network Express’s initial loss to administrative problems resulting from “inefficient employee familiarization with the systems and insufficient preparation for the administrative processes.”
Global trade-oriented blockchain solutions are moving from pilot to purported commercial viability in Asia and Europe, as shippers evaluate whether blockchain is something in which they should invest in the short term and which project to back.
Nippon is expanding cross-border services as Asia-Europe demand increases and as five Mekong subregion countries adopt an agreement that could serve as a trade model for other regions.
All three carriers in Ocean Network Express highlighted the supply-demand balance as having an influence on container industry financials, with freight rates stronger than during the previous year but lower than expected.
The merged entity, Ocean Network Express, is reporting staff shortages at some locations as the three Japanese carriers are merged, which is causing customer problems.