Japan Line in trouble

Press, 24 November 1982, Page 39

Japan Line in trouble

By Bruce Roscoe, in Tokyo

Japan Line, Ltd, the longterm agent in Japan for New Zealand Shipping Corporation, Ltd, suffered a 3.4 billion yen (about SNZI7 million) loss in the first half of this fiscal year, and has a cumulative deficit of 25 billion yen (about SNZI6S million), according to Japanese press reports. The reports, which cover the March-September period, said that of Japan’s six major shipping companies, Japan Line’s financial position was worst. The other five were expected to be able to pay shareholders an eight per cent dividend at the end of next March but it was uncertain whether Japan Line would be able to make the payments, according to the mass-circulation Asahi Shimbun daily. •■<. The Nihon Keizai Shimbun, . Japan’s leading economic daily, said Japan Line would continue to lose about 6 billion yen (about SNZ3O

million) a year until the current shipping recession bottomed out.

Japan Line, Ltd, along with the New Zealand Shipping Corporation, Ltd, is a member of the four-line Far Eastern Shipping Conference that runs the Aotea and Godwit container sailings between New Zealand and Japan. It appointed New Zealand Shipping Corporation, Ltd, as agent for its container business solicited in New Zealand last October 1.

Combined first-half earnings this year for the six shippers (Japan Line, Nihon Yusen, Showa Kaiun, Kawasaki Risen, Mitsui O.S.K. Line and Yamashita Shin Nippon Risen) fell 34 billion yen (about ?NZI7O million) below total earnings for the same period in 1981, and profits declined by 64 per cent, from 39.2 billion yen (about SNZI96 million) to 14 billion yen (about SNZ7O million).