Declining Demand in the Near-Sea Market and Lower Utilisation of Company-Owned Vessels

「In the domestic shipping business, transport volumes declined as domestic demand for steel products, the principal cargo, remained weak, compounded by the impact of production stoppages during some shippers' plant replacement work.」

「In addition to lower operating efficiency caused by the impact of stagnant domestic demand for steel products, the principal cargo, profit stagnated due to higher costs, and the cancellation of charter contracts by shippers and vessel stoppages also resulted in lower revenue.」

「In the domestic shipping business, domestic demand for steel products, the principal cargo, remained sluggish, and volumes handled remained weak.」

「To mitigate these risks, we are pursuing sales activities aimed at establishing multiple routes on major shipping lanes and diversifying the cargoes handled.」

「In the coastal shipping business, tonnage handled remained broadly flat from the previous fiscal year. However, the effect of rate revisions, mainly for oilseed and feed-related cargo, lifted net sales to ¥5,205 million, up 2.3% year on year.」

「In the domestic shipping business, cost pressures have continued to increase due to persistently high marine fuel prices and higher crew labor costs. In addition, the company was forced to suspend vessel operations because of typhoons that arrived earlier in the summer than usual. However, the effects of rate revisions for oilseed and feed-related cargo, together with efficient vessel deployment centered on company-owned barges in response to higher transportation volume, boosted profit.」

「In the domestic shipping business, transportation volume for steel products, the main cargo, declined. However, partly due to the effects of rate revisions focused on oilseed and feed-related cargo, revenue was ¥1,763 million, up 1.0% year on year.」

「In the domestic shipping business, we worked to maintain the affiliated fleet and deploy vessels efficiently, but the number of voyages and transport tonnage handled remained sluggish.」

「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.」

「In the domestic shipping business, tonnage handled increased, but higher costs continued, including elevated marine fuel prices, higher dock expenses and upward revisions to charter hire payments.」

「In the coastal shipping business, the volume of steel products, the principal cargo, increased as the domestic steel market remained firm, as in the previous fiscal year. This led to more efficient allocation of the Company's vessels, and net sales rose to ¥1,745 million, up 13.5% year on year.」

「In the coastal shipping business, steel transportation using company-owned and chartered vessels proceeded smoothly. Although costs increased due to persistently high vessel fuel oil prices, the increase in transportation volumes offset this and lifted profit.」

「In the domestic shipping business, transport volumes for steel products, the principal cargo, increased as steelmakers raised production against a backdrop of firm domestic demand. As a result, revenue increased to ¥4,949 million, up 18.9% year on year.」

「In the coastal shipping business, tighter supply and demand for steel, the main cargo, led to higher transport volumes and a shift to a stable pace.」

「In the coastal shipping business, transportation volumes for steel products, the principal cargo, recovered as steelmakers increased production. This led to more efficient allocation of managed vessels, and revenue rose 14.0% year on year to ¥1,537 million.」

「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, transport volumes have recently shown signs of recovery from the beginning of the fiscal year as demand for steel products, the core cargo, has begun to recover. However, difficult conditions since the second half of the previous fiscal year persist, and net sales declined to ¥4,162 million, down 15.5% year on year.」

「In the coastal shipping business, transportation demand continued to decline from the previous fiscal year due to supply-demand adjustments for steel products, the principal cargo, and volumes handled remained weak at 673 thousand tonnes, down 27.1% year on year. In addition, disruptions to transportation plans caused by the impact of COVID-19 significantly worsened operating efficiency and profitability.」

「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%.」

「Although fuel prices remained lower than in the previous fiscal year, adverse weather conditions caused by typhoons and other factors reduced operating efficiency, resulting in operating profit of ¥159 million, down 25.6% year on year.」

「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, transport of steel products, the core cargo, remained firm against a backdrop of strong steel demand driven by public investment, including urban redevelopment projects, and increased private-sector capital investment.」

「In the domestic shipping business, domestic shipping remained firm, supported by public investment and construction demand against a backdrop of strong, domestically driven economic conditions. The volume handled increased steadily to 1,022 thousand tonnes, up 3.3% year on year.」

「In the coastal shipping business, transport volumes for steel products, the principal cargo, remained firm as demand from construction and civil engineering projects continued to be strong, as in the previous fiscal year.」

「In the coastal shipping business, transportation volumes increased on the back of firm domestic steel demand, and business operations continued to perform well, supported by improved operating efficiency.」

「In the domestic shipping business, production by steelmakers increased as domestic demand rose, supported by construction investment. As a result, volumes of the principal cargoes handled, steel products and raw-material scrap, showed a gradual recovery from the second half of the previous fiscal year.」

「Transport volume handled in the first half increased 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%.」

「However, the utilization rate of our vessels may decline due to weaker demand in the coastal shipping market, intensifying competition or changes in the supply-demand balance for shipping capacity, which may consequently affect our Group’s operating results and financial condition.」

「In the coastal shipping business, production cuts and inventory adjustments at steelmakers resulting from weak domestic demand have run their course, and transport volumes for steel products, the principal cargo handled, showed a gradual recovery after entering the current third-quarter consolidated accounting period.」

「The Group operates 3 company-owned vessels with a focus on the near-sea market and is pursuing an active business expansion strategy. However, the utilisation rate of company-owned vessels may decline due to declining demand in the near-sea market, intensifying competition or changes in the balance of vessel supply and demand, which could affect the Group's operating results and financial position.」