Nippon Yusen Kabushiki Kaisha, known as NYK Line, is at home in
ports around the globe. With a fleet of about 830 vessels, the
company is one of the world's largest marine transportation
providers. The NYK Line fleet includes bulk carriers,
containerships, tankers, and a variety of specialized vessels,
including car carriers and liquefied natural gas (LNG) carriers;
overall, the fleet has a capacity of more than 50 million
deadweight tons (DWT). In conjunction with its marine
transportation business, NYK Line offers such logistics services as
customs clearance, supply chain management, and warehousing, and
operates more than 40 marine terminals.
NYK Line has some 450 logistics locations around the world.
About 150 are located in South Asia and Oceania, 88 in East Asia,
76 in Europe, 72 in Japan, and 67 in the Americas.
Japan represented 76% of the company's total sales in
2012. Europe and Asia generated 9% and 8%, respectively. NYK Line's
smallest market remains North America, which contributed the
remaining 7% of sales in 2012.
NYK Line divides its operations into several segments. Global
Logistics is its largest (and includes liner trade, terminal and
harbor transport, air cargo, and logistics), contributing 53% of
the company's total sales in 2012. Bulk shipping generated 40% of
the company's revenue. Its cruise ship services and real estate
operations accounted for the remainder of sales.
During the company's fiscal year 2012, the shipping market
remained sluggish worldwide due to the continuing gap between
shipping capacity supply and demand. As a result, NYK Line's
revenue decreased 6% in 2012, and its net loss increased by 193%
compared to the previous year.
The drop in revenue and net loss were attributable to a 10%
decrease in its Liner Trade and Cruise segments. These were
negatively affected by a spike in bunker oil prices at a time when
freight rates for the core liner trade were slumping as a result of
oversupply. These lackluster conditions reflected a slump in
transportation demand centered on the automotive manufacturing
industry, which was affected by the Great East Japan
Earthquake in March 2011. Other negative factors included
flooding in Thailand and the negative effect of Europe's
NYK Line, along with its industry peers, has struggled as fuel
prices sky-rocketed followed by the global economic downturn that
has caused cargo demand to plunge. As one of the biggest car
carriers, NYK Line particularly has suffered along with the
NYK Line is banking on increased demand for oil. About 80% of
the company's new vessels are intended for use in the natural
resources and energy transportation. Many of which are under
long term contracts to customers in growing economies such as
Brazil, China, and India.
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