JAPAN's big three container shipping lines improved their positions year on year in the first nine months of FY2013 with MOL returning to profit after a big loss, NYK posting an eightfold gain while "K" Line earnings went up 54.6 per cent.

MOL, biggest of the three and ranked 10th in the world, reversed a JPY58.7 billion (US$579.36 million) net loss over the nine months into a net profit of JPY29.5 billion, drawn on revenues of JPY1.27 trillion, up 13 per cent.

NYK, the second biggest and ranked 12th in the world, posted an 831 per cent profit increase to JPY28.3 billion, drawn on revenues of JPY1.6 trillion, up 18 per cent.

"K" Line, the third largest and ranked 16th in the world, posted a 54.6 per cent net profit increase to JPY16.7 billion, drawn on revenues of JPY918 billion, up 14.4 per cent.

Of its results, MOL said: "In the containership business, the freight market experienced a continued downswing from the beginning of 2013 due to an increase in deliveries of large containerships.

"We worked to restore freight freights on all routes and cut costs through action to reduce the supply of capacity including rationalisation of services which led us to see a temporary recovery in rates.

"Following this recovery, however, freight rates on all routes fell again. We redoubled our efforts to cut costs by reducing fuel costs and slow steaming. In spite of these efforts, a loss was incurred," said the MOL statement.

Said NYK: "In the container shipping division, freight rates are forecast to remain low due to a weak recovery in cargo volume after Chinese New Year. Profitability is expected to remain under severe pressure.

"Although a strong sense of uncertainty continued to reign, positive signs also began to emerge. Freight rates declined due to the continued deliveries of ultra large containerships. Freight rates did not, however, fall below previous lows," said the NYK statement, adding that there had also been a nine per cent decrease in bunker fuel costs to US$626 a tonne.

Said "K" Line: "The group recorded a slight increase [in loaded containers] from the year-ago period in Asia-North America service while a seven per cent decrease in Asia Europe owing to the downsizing of our service capacity to meet decreased demand from weak European economies.

"We carried 15 per cent less cargo on intra-Asia and north-south services as a result of streamlining unprofitable service lines. The result in transportation volume was that the group carried five per cent less than in the year-ago period. As a result, the containership business posted a loss in the [nine-month] cumulative period," said the "K" Line statement.