Developing stable shippers and improving coastal shipping profitability

「In coastal shipping, transport volumes declined as domestic demand for steel products, the main cargo category, remained weak, compounded by production stoppages during facility replacement work by some shippers. As a result, revenue fell to ¥3,270 million, down ¥132 million year on year, or 96.1%, and operating profit fell to ¥111 million, down ¥60 million, or 65.0%, resulting in lower revenue and profit.」

「Meanwhile, we sought to improve profitability by accepting spot cargo orders for barge transport and deploying vessels whose charter contracts had ended as continuous-trip vessels for major manufacturers. We also accepted transport orders for large special cargo, including plant equipment and railway cars, through cooperation with other departments, but these efforts were insufficient to offset the negative factors.」

「For short-voyage transport, the company improved earnings and profit margins through proactive allocation of trip-chartered vessels and plant transport using barges in response to transport needs.」

「As a result, revenue was ¥3,346 million and operating profit was ¥218 million.」

「As a result, handled volumes were 1,823 thousand tonnes, revenue was ¥6,930 million, and operating profit was ¥308 million.」

「In the coastal shipping business, tonnes handled remained broadly unchanged from the previous fiscal year, but the effects of rate revisions, mainly for edible oils and feed, lifted revenue 2.3% to ¥5,205 million. Although operating costs, including persistently high fuel oil prices, and administrative expenses increased, the company sought to improve its profit margin through efficient operation of its company-owned vessels and barges. As a result, operating profit rose 35.0% to ¥258 million.」

「In coastal shipping, higher costs from persistently elevated marine fuel prices and increased crew labor costs continued. Although the company was forced to suspend vessel operations due to typhoons arriving earlier than usual in summer, the effect of rate revisions for oilseed and feed-related cargo, together with efficient allocation centred on company-owned barges as volumes increased, lifted profit. As a result, revenue rose 2.3% year on year to ¥3,434 million and operating profit increased 35.7% to ¥155 million, resulting in higher revenue and profit.」

「In the coastal shipping business, transportation volumes for steel products, the principal cargo, declined, but the effects of rate revisions, mainly for edible oils and feed, lifted revenue 1.0% to ¥1,763 million. Although costs rose and fuel oil prices remained high, efficient vessel allocation helped increase operating profit 18.4% to ¥88 million.」

「As a result, handled volume decreased to 1,739 thousand tons (93.9% of the previous period). Revenue edged up to ¥6,729 million (up ¥97 million from the previous period, 101.5%), while operating profit declined to ¥164 million (down ¥108 million, 60.1%).」

「In the coastal shipping business, tonnes handled remained sluggish compared with the previous fiscal year, down 5.5% year on year, but efficient vessel allocation resulted in revenue growth of 2.8% to ¥5,087 million. Meanwhile, in addition to higher operating costs from upward revisions to charter rates paid and persistently high fuel oil prices, administrative expenses also increased, causing operating profit to fall 6.1% to ¥191 million.」

「As a result, revenue was ¥3,358 million, up 6.2% year on year, and operating profit was ¥114 million, up 1.4%.」

「In the coastal shipping business, the domestic steel market remained firm, as in the previous fiscal year, increasing transportation volumes for steel products, the principal cargo, and leading to more efficient allocation of managed vessels. Revenue consequently rose 13.5% year on year to ¥1,745 million. Although charter rates paid to shipowners were revised upward and fuel oil prices remained high, operating profit increased 51.7% to ¥74 million.」

「As a result, handled volumes increased to 1,853 thousand tonnes, up 381 thousand tonnes from the previous fiscal year, or 125.9%. Revenue rose to ¥6,632 million, up ¥1,020 million, or 118.2%, while operating profit increased to ¥272 million, up ¥157 million, or 236.9%, resulting in higher revenue and profit.」

「In the coastal shipping business, transportation volumes for steel products, the principal cargo, increased as steelmakers raised production in response to firm domestic demand, resulting in revenue of ¥4,949 million, up 18.9% year on year. Although costs also increased due to revised charter rates and persistently high fuel oil prices, the growth in transportation volumes led to more efficient allocation of controlled vessels. Operating profit therefore rose 158.5% to ¥203 million.」

「In the coastal shipping business, transportation volumes increased and returned to a stable pace as the supply-demand balance for steel, the principal cargo, tightened. In line with this, the company sought to increase volumes handled by improving utilization through the reorganization of company-owned and controlled vessels. As a result, revenue increased 14.4% to ¥3,163 million. Although charter rates and persistently high fuel prices pushed up costs, the increase in total volumes offset this, and operating profit rose 172.5% to ¥112 million.」

「In coastal shipping, steel transport volumes, the main cargo category, recovered as steelmakers increased production. More efficient allocation of managed vessels also contributed, bringing revenue to ¥1,537 million, up 14.0% year on year. Although fuel oil prices rose and charter rates paid to shipowners were revised upward, operating profit was ¥49 million, compared with ¥1 million in the year-earlier period.」

「In the coastal shipping business, the decline in steel demand continuing from the previous fiscal year had a significant impact. Although signs of recovery emerged toward the second half, the main reason for lower sales over the full fiscal year was the decline in cargo volume handled to 1,471 thousand tons, down 272 thousand tons from the previous fiscal year.」

「In the coastal shipping business, transportation volumes had begun to recover from the start of the fiscal year as demand for steel products, the principal cargo, showed signs of recovery. However, difficult conditions that began in the latter half of the previous fiscal year continued, and revenue declined 15.5% to ¥4,162 million. The company sought to reduce transportation costs by revising charter rates and reviewing operating arrangements, among other measures, and reduced administrative expenses, but operating profit fell 50.4% to ¥78 million.」

「The port operations business faced a relatively challenging operating environment following the sharp economic downturn caused by the COVID-19 pandemic, but handling of hazardous cargo following the opening of a new warehouse in the Kobe area made a meaningful contribution to performance. Sales efforts for new stable cargo also paid off, producing a certain level of results despite the difficult environment. As a result, including the effects of these new initiatives, revenue increased 2.9% year on year to ¥2,321 million.」

「In the coastal shipping business, transportation volumes for steel products, the principal cargo, fell substantially as steelmakers reduced production. In response, the company revised charter rates, reviewed operating arrangements and reduced administrative expenses, but was unable to halt the decline in profit. Revenue was ¥1,348 million, down 21.2% year on year, and operating profit was ¥1 million, down 97.9%.」

「In the coastal shipping business, transportation of steel products, the principal cargo, declined as steelmakers reduced production and adjusted inventories amid weak domestic demand. Although some shippers revised their freight rates, revenue declined 3.7% to ¥4,925 million. Fuel prices remained lower than in the previous fiscal year, but operating efficiency deteriorated due to adverse weather, including typhoons. Operating profit consequently fell 25.6% to ¥159 million.」

「In the coastal shipping business, steel transport, which had been performing well, began to weaken. In addition, successive periods of severe weather caused by typhoons and other factors significantly reduced operating efficiency. Cargo transport volume was therefore 923 thousand tons, down 9.7% year on year, and net sales declined to ¥3,337 million, down 1.2%.」

「In the coastal shipping business, the decline in transportation volumes for steel products, the principal cargo, together with a review of chartering arrangements, prevented the company from covering higher operating costs. Revenue was ¥1,710 million, down 0.8% year on year, and operating profit was ¥73 million, down 21.5%.」

「In the coastal shipping business, transportation of steel products, the core cargo, remained solid on the back of strong steel demand driven by public investment, including urban redevelopment projects, and increased private-sector capital investment. Although rising fuel prices and transportation costs due to labor shortages became increasingly burdensome, active negotiations to revise freight rates resulted in revenue of ¥5,112 million, up 7.6% year on year, and operating profit of ¥213 million, up 34.2%.」

「In the coastal shipping business, coastal transportation remained firm, supported by public investment and construction demand against a backdrop of a strong, domestically driven economy. Transportation volumes handled increased steadily to 1,022 thousand tonnes, up 3.3% year on year. Meanwhile, rising fuel prices and transportation costs due to labor shortages became increasingly burdensome, and we actively pursued negotiations to revise freight rates. As a result, revenue increased 9.5% to ¥3,377 million, while operating profit rose 73.4% to ¥137 million, reflecting revenue growth and the effects of reducing administrative expenses.」

「In the coastal shipping business, transportation volumes for steel products, the principal cargo, remained solid as demand for construction and civil engineering work remained strong, as in the previous fiscal year. As a result, despite persistently high fuel oil prices, revenue was ¥1,723 million, up 13.3% year on year, and operating profit was ¥93 million, up 134.1%.」

「As steel market conditions remained firm, transportation volumes for steel products and raw-material scrap also increased significantly. Although higher fuel prices increased costs, the increase in transportation volumes and improved operating efficiency more than offset this, enabling the Company to improve profitability.」

「In the coastal shipping business, transportation volumes for steel products and raw-material scrap, the principal cargoes handled, showed a gradual recovery from the second half of the previous fiscal year as steelmakers increased production in response to higher domestic demand supported by construction investment. As a result, revenue was ¥4,751 million, up 9.0% year on year. Despite higher fuel unit prices, operating profit was ¥159 million, up 47.5%, helped by improved fleet allocation efficiency resulting from higher volumes handled.」

「Against this backdrop, transportation of raw-material scrap also remained firm, and transportation volume handled in the first half of the fiscal year rose significantly to 990 thousand tonnes, up 15.2% year on year.」

「In the coastal shipping business, volumes increased for steel products, the principal cargo, as demand for construction and civil engineering work remained strong. As a result, revenue was ¥1,520 million, up 9.9% year on year, and operating profit was ¥40 million, up 168.4%.」

「In the coastal shipping division, relationships with the major shippers, steel manufacturers, are strong and stable. However, because steel cargo movements are affected by economic conditions, developing other stable shippers has become an urgent issue.」

「In the warehousing business, base-load cargo was secured on an individual basis, but work-related revenue declined along with lower revenue in the linked port operations business. Although efforts were made to reduce administrative expenses, fixed costs continued to be difficult to absorb.」

「In the warehousing business, base-load cargo was secured on an individual basis and sales efforts for new projects continued, but handling volumes remained under severe conditions due to the downturn in the linked port operations business.」

「In the coastal shipping division, relationships with the major shippers, steel manufacturers, are strong and stable. However, because steel cargo movements are affected by economic conditions, developing other stable shippers has become an urgent issue. Factors such as requests for higher charter rates continue to pressure profitability in the coastal shipping division, and the Company aims to improve its profit margin by increasing sales and reducing expenses.」