Monday, September 28, 2009

Mitsui OSK Announces It Expects Greater Losses

Shares take a hammering
Shipping News Feature

JAPAN - Mitsui O.S.K. Lines has reported that it expects to suffer an operating loss of 13 billion yen ($146 million) in the six months ended September. The losses have been attributed to container terminal charges and fuel costs being higher than expected in comparison to recoveries in freight rates.

The news has adversely affected the shipping line’s shares, which are down almost six and a half percent.

Mitsui is not alone in its hardship. According to AXS-Alphaliner, the world’s 17 largest container lines were all unprofitable in the first half, with losses totalling more than $6 billion.

The industry continues to suffer from rising costs, with fuel alone climbing by 83 percent this year, and slack demand caused by over capacity and smaller markets.