JAPAN’S SECOND largest shipping company – K Line – has reported a 10% cent drop in its net profit to JPY15.50 billion (US$140.17 million) for the first quarter of its financial year ended June 30, which compares to JPY17.20 billion in the same three-month period last year. The shipping line pointed out that its containership business in Q1 2005 grew steadily with cargo movements on Asia-North America services reaching record high volumes. However, the shipping line warned that overall operating performance in the second quarter “will not reach the goals of the initial projections, since it has been hit by the considerable adverse effects of skyrocketing fuel oil prices as well as the unsteady trend in the freight rates of bulk carriers,” a statement said.
