{"id":347,"date":"2023-01-21T21:53:04","date_gmt":"2023-01-21T12:53:04","guid":{"rendered":"https:\/\/kimamev.com\/?p=347"},"modified":"2023-03-11T16:22:56","modified_gmt":"2023-03-11T07:22:56","slug":"shipping","status":"publish","type":"post","link":"https:\/\/kimamev.com\/en\/en_compare\/shipping\/","title":{"rendered":"Three major shipping companies in Japan(NYK, Mitsui O.S.K. Lines, \u201cK\u201d\u00a0LINE)"},"content":{"rendered":"\n<p>This section compares the sales and business activities of the three major Japanese shipping companies.<\/p>\n\n\n\n<p>The sales and profit scale of the three companies are as follows. Unit : millions of yen<\/p>\n\n\n\n<ol class=\"is-style-st-no-border has-st-border has-st-solid-border has-st-thick-border-width has-light-green-cyan-background-color has-background has-st-regular-font-size\">\n<li>Nippon Yusen Kaisha(NYK)(\u65e5\u672c\u90f5\u8239)<br>&lt;Tokyo, Prime Market (Code Number: 9101)&gt;<br><strong><span class=\"st-mymarker-s-b\">2280775<\/span><\/strong>(Net sales)   <strong><span class=\"st-mymarker-s-b\">1009105<\/span><\/strong>(Net profit)<\/li>\n\n\n\n<li>Mitsui O.S.K. Lines, Ltd.(\u5546\u8239\u4e09\u4e95)<br>&lt;Tokyo, Prime Market (Code Number: 9104)&gt;<br><strong><span class=\"st-mymarker-s-b\">1269310<\/span><\/strong>(Net sales)\u3000<strong><span class=\"st-mymarker-s-b\">708819<\/span><\/strong>(Net profit)<\/li>\n\n\n\n<li>Kawasaki Kisen Kaisha, Ltd. (\u201cK\u201d&nbsp;LINE)(\u5ddd\u5d0e\u6c7d\u8239)<br>&lt;Tokyo, Prime Market (Code Number: 9107)&gt;<br><strong><span class=\"st-mymarker-s-b\">756983<\/span><\/strong>(Net sales)\u3000<span class=\"st-mymarker-s-b\"><strong>642424<\/strong><\/span>(Net profit)<\/li>\n<\/ol>\n\n\n\n<p><br><\/p>\n\n\n\n<div id=\"toc_container\" class=\"no_bullets\"><p class=\"toc_title\">\u76ee\u6b21<\/p><ul class=\"toc_list\"><li><a href=\"#Business\"><span class=\"toc_number toc_depth_1\">1<\/span> Business<\/a><\/li><li><a href=\"#Features_of_Marine_Transportation_Business\"><span class=\"toc_number toc_depth_1\">2<\/span> Features of Marine Transportation Business<\/a><\/li><li><a href=\"#Sales_Ratio_by_Business_Segment\"><span class=\"toc_number toc_depth_1\">3<\/span>  Sales Ratio by Business Segment<\/a><\/li><li><a href=\"#Revenues_and_Net_Income\"><span class=\"toc_number toc_depth_1\">4<\/span> Revenues and Net Income<\/a><\/li><li><a href=\"#Financial_affairs\"><span class=\"toc_number toc_depth_1\">5<\/span> Financial affairs<\/a><\/li><li><a href=\"#Annual_income_of_employees\"><span class=\"toc_number toc_depth_1\">6<\/span>  Annual income of employees<\/a><\/li><li><a href=\"#Future_Outlook\"><span class=\"toc_number toc_depth_1\">7<\/span> Future Outlook<\/a><\/li><\/ul><\/div>\n<h2 class=\"is-style-st-heading-custom-diagonal has-background\" style=\"background-color:#d0eff2\"><span id=\"Business\">Business<\/span><\/h2>\n\n\n\n<p>The business activities of NYK, Mitsui O.S.K. Lines, and \u201cK\u201d&nbsp;LINE are diverse, ranging not only from marine transportation by cargo ship, but also land transportation and air transportation.<\/p>\n\n\n\n<div class=\"is-layout-constrained wp-block-group\"><div class=\"wp-block-group__inner-container\">\n<p class=\"has-large-font-size\"><span class=\"st-mymarker-s-b\"><span class=\"st-mymarker-s\">Marine transportation<\/span><\/span><\/p>\n\n\n\n<ul class=\"has-st-border has-st-dashed-border has-st-thick-border-width is-style-st-square-checkbox-no-border has-st-regular-font-size\">\n<li>Liner (Container ship)<br>Sailing on a set route and schedule. Carries groceries, daily necessities, home appliances, etc.<\/li>\n\n\n\n<li>Bulk shipping<br>The ship is chartered and sailed on a route and schedule tailored to each client&#8217;s needs.\n<ul class=\"is-style-st-maruck\">\n<li>Dry Bulk Business<br>Bulk cargoes such as iron ore, coal, wood chips, etc. (loaded in bulk without being packed)<\/li>\n\n\n\n<li>Automobile export<\/li>\n\n\n\n<li>Energy sector (crude oil, LNG, petroleum, etc.)<\/li>\n\n\n\n<li>Ocean development<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/div><\/div>\n\n\n\n<p class=\"has-large-font-size\"><span class=\"st-mymarker-s\">land transportation<\/span><\/p>\n\n\n\n<ul class=\"has-st-border has-st-dashed-border has-st-thick-border-width is-style-st-square-checkbox-no-border\">\n<li>Logistics<br>Provides logistics services by truck and rail before and after being loaded onto cargo ships.<\/li>\n<\/ul>\n\n\n\n<p class=\"has-large-font-size\"><span class=\"st-mymarker-s-b\"><span class=\"st-mymarker-s\">air transportation<\/span><\/span>(\u203bNYK)<\/p>\n\n\n\n<ul class=\"is-style-st-square-checkbox-no-border has-st-border has-st-dashed-border has-st-thick-border-width\">\n<li>NYK operates air transportation through its subsidiary Nippon Cargo Airlines Co. Ltd.<\/li>\n<\/ul>\n\n\n\n<p><br><\/p>\n\n\n\n<figure class=\"is-layout-flex wp-block-gallery-2 wp-block-gallery has-nested-images columns-default is-cropped\">\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"640\" height=\"427\" data-id=\"247\"  src=\"https:\/\/kimamev.com\/wp-content\/uploads\/2023\/01\/5051781_s-1.jpg\" alt=\"\" class=\"wp-image-247\" srcset=\"https:\/\/kimamev.com\/wp-content\/uploads\/2023\/01\/5051781_s-1.jpg 640w, https:\/\/kimamev.com\/wp-content\/uploads\/2023\/01\/5051781_s-1-300x200.jpg 300w\" sizes=\"(max-width: 640px) 100vw, 640px\" \/><\/figure>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"640\" height=\"427\" data-id=\"246\"  src=\"https:\/\/kimamev.com\/wp-content\/uploads\/2023\/01\/22824528_s-1.jpg\" alt=\"\" class=\"wp-image-246\" srcset=\"https:\/\/kimamev.com\/wp-content\/uploads\/2023\/01\/22824528_s-1.jpg 640w, https:\/\/kimamev.com\/wp-content\/uploads\/2023\/01\/22824528_s-1-300x200.jpg 300w\" sizes=\"(max-width: 640px) 100vw, 640px\" \/><\/figure>\n<\/figure>\n\n\n\n<p><br><\/p>\n\n\n\n<h2 class=\"is-style-st-heading-custom-diagonal has-background\" style=\"background-color:#d0eff2\"><span id=\"Features_of_Marine_Transportation_Business\">Features of Marine Transportation Business<\/span><\/h2>\n\n\n\n<p>One of the characteristics of the shipping business is that <span class=\"st-mymarker-s-b\">it is an industry that is highly susceptible to market (economic) conditions.<\/span><\/p>\n\n\n\n<p>The graph below shows the change in the freight rate index (BDI) for dry bulk carriers.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote has-text-align-right\">\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1024\" height=\"445\" src=\"https:\/\/kimamev.com\/wp-content\/uploads\/2023\/01\/ed2635f1a4664c48b75cece6ff42260a-1024x445.png\" alt=\"\" class=\"wp-image-230\" srcset=\"https:\/\/kimamev.com\/wp-content\/uploads\/2023\/01\/ed2635f1a4664c48b75cece6ff42260a-1024x445.png 1024w, https:\/\/kimamev.com\/wp-content\/uploads\/2023\/01\/ed2635f1a4664c48b75cece6ff42260a-300x130.png 300w, https:\/\/kimamev.com\/wp-content\/uploads\/2023\/01\/ed2635f1a4664c48b75cece6ff42260a-768x334.png 768w, https:\/\/kimamev.com\/wp-content\/uploads\/2023\/01\/ed2635f1a4664c48b75cece6ff42260a-1536x668.png 1536w, https:\/\/kimamev.com\/wp-content\/uploads\/2023\/01\/ed2635f1a4664c48b75cece6ff42260a-2048x890.png 2048w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n<cite><a href=\"https:\/\/www.kline.co.jp\/ja\/ir\/finance\/shipping.html\">Citation K LINE HP<\/a><\/cite><\/blockquote>\n\n\n\n<p>We can see that freight rates for dry bulk carriers are rising in the second half of 2020 and into 2021. This can be attributed to the following three reasons caused by the Corona disaster.<\/p>\n\n\n\n<ul class=\"is-style-st-square-checkbox\">\n<li>Decrease in new container production<br>90% of containers are produced in China, but new container manufacturing has decreased significantly due to the 2019 U.S.-China trade conflict and the reduction in factory capacity due to the Corona disaster<\/li>\n\n\n\n<li>Shortage of port workers<\/li>\n\n\n\n<li>Rapid increase in demand for cargo transport<br>Rather high export volumes from China to Europe and North America due to increased demand for nest eggs<\/li>\n<\/ul>\n\n\n\n<p>In addition to , <\/p>\n\n\n\n<ul class=\"is-style-st-timeline-count\">\n<li><span class=\"st-mymarker-s-b\">Crude oil price (<\/span>fuel for cargo ships)<\/li>\n\n\n\n<li><span class=\"st-mymarker-s-b\">Foreign exchange (<\/span>settlements in the shipping industry are often in U.S. dollars<span class=\"st-mymarker-s-b\">)<\/span><\/li>\n<\/ul>\n\n\n\n<p>The above factors will swing the performance of shipping companies for better or worse.<\/p>\n\n\n\n<p>Freight rates for cargo vessels are classified as either stable freight rate business or non-stable freight rate business. The difference is that <span class=\"st-mymarker-s-b\">stable freight rate business is a medium- to long-term contract, while non-stable freight rate business is a short-term contract.<\/span><\/p>\n\n\n\n<p>The left side of the chart below shows stable freight rate businesses, and the right side shows non-stable freight business.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"alignright size-large\"><img decoding=\"async\" width=\"1024\" height=\"394\" src=\"https:\/\/kimamev.com\/wp-content\/uploads\/2023\/01\/7e22c3c650cb3f4c6cd576aab7c95837-1024x394.png\" alt=\"\" class=\"wp-image-238\" srcset=\"https:\/\/kimamev.com\/wp-content\/uploads\/2023\/01\/7e22c3c650cb3f4c6cd576aab7c95837-1024x394.png 1024w, https:\/\/kimamev.com\/wp-content\/uploads\/2023\/01\/7e22c3c650cb3f4c6cd576aab7c95837-300x115.png 300w, https:\/\/kimamev.com\/wp-content\/uploads\/2023\/01\/7e22c3c650cb3f4c6cd576aab7c95837-768x295.png 768w, https:\/\/kimamev.com\/wp-content\/uploads\/2023\/01\/7e22c3c650cb3f4c6cd576aab7c95837-1536x590.png 1536w, https:\/\/kimamev.com\/wp-content\/uploads\/2023\/01\/7e22c3c650cb3f4c6cd576aab7c95837-2048x787.png 2048w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\"><a href=\"https:\/\/www.nyk.com\/ir\/library\/result\/2022\/__icsFiles\/afieldfile\/2022\/11\/04\/221104_ppt_jp_1.pdf\">Citation NYK HP<\/a><\/figcaption><\/figure><\/div>\n\n\n<p><\/p>\n\n\n\n<p><span class=\"st-mymarker-s-b\">Amid the shipping disruption caused by the Corona disaster, we see that businesses other than stable freight rate businesses, which tend to be short-term contracts, are earning large profits in 2020 and 2021.<\/span><\/p>\n\n\n\n<p><br><\/p>\n\n\n\n<h2 class=\"is-style-st-heading-custom-diagonal has-background\" style=\"background-color:#d0eff2\"><span id=\"Sales_Ratio_by_Business_Segment\"> Sales Ratio by Business Segment<\/span><\/h2>\n\n\n\n<p>Let&#8217;s look at NYK&#8217;s segment sales ratios.<\/p>\n\n\n\n<figure class=\"wp-block-table has-st-td-width has-st-td-width--1 is-style-st-table-line-2\"><table><thead><tr><th>Segment<\/th><th>Sales ratio<\/th><th>Ordinary Income Ratio<\/th><\/tr><\/thead><tbody><tr><td>Liner<\/td><td>8%<\/td><td><span class=\"st-mymarker-s-b\">385%<\/span><\/td><\/tr><tr><td>Air transport<\/td><td>8%<\/td><td><span class=\"st-mymarker-s\">39%<\/span><\/td><\/tr><tr><td>Logistics<\/td><td>37%<\/td><td>7%<\/td><\/tr><tr><td>Bulk shipping<\/td><td>43%<\/td><td>14%<\/td><\/tr><tr><td>\u305d\u306e\u4ed6<\/td><td>4%<\/td><td>-1%<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>NYK&#8217;s airfreight segment has the second highest recurring profit margin after liner shipping.<\/p>\n\n\n\n<p>Next is Mitsui O.S.K. Lines.<\/p>\n\n\n\n<figure class=\"wp-block-table has-st-td-width has-st-td-width--1 is-style-st-table-line-2\"><table><thead><tr><th>Segment<\/th><th>Sales ratio<\/th><th>Ordinary Income Ratio<\/th><\/tr><\/thead><tbody><tr><td>Liner<\/td><td>22%<\/td><td><span class=\"st-mymarker-s-b\">236%<\/span><\/td><\/tr><tr><td>Dry bulk carrier<\/td><td>28%<\/td><td>12%<\/td><\/tr><tr><td>Energy, Marine <\/td><td>23%<\/td><td>7%<\/td><\/tr><tr><td>Car carriers, ferries, domestic RORO vessels<\/td><td>19%<\/td><td>4%<\/td><\/tr><tr><td>Othes<\/td><td>8%<\/td><td>8%<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>MOL has a high percentage of &#8220;energy and offshore business&#8221; and is strong in the fields of tankers, offshore, coal carriers, wind energy, and liquefied gas.<\/p>\n\n\n\n<p>MOL also focuses on offshore development, with FPSO (Floating Production, Storage, and Offloading) and FSRU (Floating Storage and Regasification Unit for LNG), which are representative of MOL&#8217;s offshore business, utilizing ships not for transportation but by floating them at specific locations. MOL is also actively investing in other non-shipping areas such as real estate.<\/p>\n\n\n\n<p>Finally, let&#8217;s take a look at &#8220;K&#8221; Line.<\/p>\n\n\n\n<figure class=\"wp-block-table has-st-td-width has-st-td-width--1 is-style-st-table-line-2\"><table><thead><tr><th>Segment<\/th><th>Sales ratio<\/th><th>Ordinary Income Ratio<\/th><\/tr><\/thead><tbody><tr><td>Product Logistics<\/td><td>50%<\/td><td><span class=\"st-mymarker-s-b\">163%<\/span><\/td><\/tr><tr><td>Dry bulk carrier<\/td><td>37%<\/td><td>9%<\/td><\/tr><tr><td>Energy resources<\/td><td>12%<\/td><td>5%<\/td><\/tr><tr><td>Others<\/td><td>1%<\/td><td>0%<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>Liner shipping (containerships) accounts for more than 90% of the company&#8217;s product logistics business.<\/p>\n\n\n\n<p>All three companies have by far the highest profit margins in liner shipping. The liner trade business of the three companies is operated by ONE, an equity method affiliate established jointly by the three companies in April 2018. Amid a wave of industry restructuring, including the consolidation of major overseas shipping companies, the three former rivals are now operating their liner trade business under the ONE brand in order to ensure competitiveness through economies of scale.<\/p>\n\n\n\n<p>The percentage of the liner(container ship) business of the three companies to total net sales is as follows: &#8220;K&#8221; LINE (<span class=\"st-mymarker-s-b\">45%<\/span>) &gt; Mitsui O.S.K. Lines (<span class=\"st-mymarker-s-b\">22%<\/span>) &gt; NYK Line (<span class=\"st-mymarker-s-b\">8%<\/span>).<\/p>\n\n\n\n<p>While liner trade is the core business of &#8220;K&#8221; LINE, the liner trade business accounts for only 8% of NYK&#8217;s total sales, as the company follows a comprehensive route by land, sea, and air.<br><\/p>\n\n\n\n<h2 class=\"has-text-align-left is-style-st-heading-custom-diagonal has-background\" style=\"background-color:#d0eff2\"><span id=\"Revenues_and_Net_Income\">Revenues and Net Income<\/span><\/h2>\n\n\n\n<p>As an example of the sales and net income transition in the shipping industry before and after the Corona Disaster, we take Nippon Yusen Kaisha (NYK Line).<br><\/p>\n\n\n\n<figure class=\"is-layout-flex wp-block-gallery-4 wp-block-gallery has-nested-images columns-default is-cropped\">\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"856\" height=\"778\" data-id=\"360\"  src=\"https:\/\/kimamev.com\/wp-content\/uploads\/2023\/01\/image-22.png\" alt=\"\" class=\"wp-image-360\" srcset=\"https:\/\/kimamev.com\/wp-content\/uploads\/2023\/01\/image-22.png 856w, https:\/\/kimamev.com\/wp-content\/uploads\/2023\/01\/image-22-300x273.png 300w, https:\/\/kimamev.com\/wp-content\/uploads\/2023\/01\/image-22-768x698.png 768w\" sizes=\"(max-width: 856px) 100vw, 856px\" \/><\/figure>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"708\" height=\"664\" data-id=\"361\"  src=\"https:\/\/kimamev.com\/wp-content\/uploads\/2023\/01\/image-23.png\" alt=\"\" class=\"wp-image-361\" srcset=\"https:\/\/kimamev.com\/wp-content\/uploads\/2023\/01\/image-23.png 708w, https:\/\/kimamev.com\/wp-content\/uploads\/2023\/01\/image-23-300x281.png 300w\" sizes=\"(max-width: 708px) 100vw, 708px\" \/><\/figure>\n<figcaption class=\"blocks-gallery-caption wp-element-caption\"><br><\/figcaption><\/figure>\n\n\n\n<p>Comparing 2018 and 2019 to 2021 and 2022 after the Corona Disaster, net income has increased more than tenfold while revenue has increased moderately.<\/p>\n\n\n\n<p>This is due to the surge in freight rates for cargo vessels due to logistical disruptions, which shows how sensitive the shipping industry is to market conditions.<\/p>\n\n\n\n<h2 class=\"is-style-st-heading-custom-diagonal has-background\" style=\"background-color:#d0eff2\"><span id=\"Financial_affairs\">Financial affairs<\/span><\/h2>\n\n\n\n<p> As an example of a profit-and-loss statement for the shipping industry, we take Mitsui O.S.K. Lines, Ltd.<\/p>\n\n\n\n<div class=\"wp-block-st-blocks-my-box st-mybox has-title\" style=\"background-color:#fff;border-color:#757575\"><p class=\"st-mybox-title\" style=\"color:#424242;font-weight:bold;text-shadow:#fff 3px 0px 0px, #fff 2.83487px .981584px 0px, #fff 2.35766px 1.85511px 0px, #fff 1.62091px 2.52441px 0px, #fff .705713px 2.91581px 0px, #fff -0.287171px 2.98622px 0px, #fff -1.24844px 2.72789px 0px, #fff -2.07227px 2.16926px 0px, #fff -2.66798px 1.37182px 0px, #fff -2.96998px .42336px 0px, #fff -2.94502px -0.571704px 0px, #fff -2.59586px -1.50383px 0px, #fff -1.96093px -2.27041px 0px, #fff -1.11013px -2.78704px 0px, #fff -0.137119px -2.99686px 0px, #fff .850987px -2.87677px 0px, #fff 1.74541px -2.43999px 0px, #fff 2.44769px -1.73459px 0px, #fff 2.88051px -0.838246px 0px;background:linear-gradient(0deg, #fff 0%, #fff 55%, rgba(0, 0, 0, 0) 55%, rgba(0, 0, 0, 0) 100%)\"><i class=\"st-fa st-svg-check-circle st-css-no\" aria-hidden=\"\"><\/i>Fiscal year ending March 31, 2022<\/p><div class=\"st-in-mybox\">\n<p class=\"has-st-border has-st-dashed-border has-st-medium-border-width has-st-regular-font-size\">Net sales\u3000\u3000\u30001269310[millions of yen]<\/p>\n\n\n\n<p class=\"has-st-border has-st-dashed-border has-st-medium-border-width has-st-regular-font-size\">Operating profit\u3000\u3000<span class=\"st-mymarker-s\">55005<\/span>[millions of yen]<\/p>\n\n\n\n<p class=\"has-st-border has-st-dashed-border has-st-medium-border-width has-st-regular-font-size\">Ordinary income\u3000\u3000<span class=\"st-mymarker-s-b\">721779<\/span>[millions of yen]<\/p>\n\n\n\n<p class=\"has-st-border has-st-dashed-border has-st-medium-border-width has-st-regular-font-size\">Net profit\u3000\u3000\u3000708819[millions of yen]<\/p>\n<\/div><\/div>\n\n\n\n<p>Normally, operating income \u2252 ordinary income, but we can see that operating income (55505) &lt; &lt; &lt; ordinary income (721779).<\/p>\n\n\n\n<p>This is because the profit of &#8220;ONE&#8221;, an equity-method affiliate engaged in the liner trade (containership) business, is added to ordinary income as non-operating income.<\/p>\n\n\n\n<p>The liner trade business, which boasts an overwhelming profit margin of over 100%, is added to non-operating income, resulting in recurring profit &gt;&gt; operating income.<\/p>\n\n\n\n<p>Next, let us take &#8220;K&#8221; LINE. as an example of cash flow in the shipping industry.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1024\" height=\"394\" src=\"https:\/\/kimamev.com\/wp-content\/uploads\/2023\/01\/a2be564b1bd6ce6184708428c8acd5ff-1024x394.png\" alt=\"\" class=\"wp-image-362\" srcset=\"https:\/\/kimamev.com\/wp-content\/uploads\/2023\/01\/a2be564b1bd6ce6184708428c8acd5ff-1024x394.png 1024w, https:\/\/kimamev.com\/wp-content\/uploads\/2023\/01\/a2be564b1bd6ce6184708428c8acd5ff-300x115.png 300w, https:\/\/kimamev.com\/wp-content\/uploads\/2023\/01\/a2be564b1bd6ce6184708428c8acd5ff-768x295.png 768w, https:\/\/kimamev.com\/wp-content\/uploads\/2023\/01\/a2be564b1bd6ce6184708428c8acd5ff-1536x591.png 1536w, https:\/\/kimamev.com\/wp-content\/uploads\/2023\/01\/a2be564b1bd6ce6184708428c8acd5ff.png 1826w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"alignright size-large is-resized\"><img decoding=\"async\" src=\"https:\/\/kimamev.com\/wp-content\/uploads\/2023\/01\/c5ec84395fcb3e2b58fb931cc2bcd5e6-1024x401.png\" alt=\"\" class=\"wp-image-363\" width=\"1024\" height=\"401\" srcset=\"https:\/\/kimamev.com\/wp-content\/uploads\/2023\/01\/c5ec84395fcb3e2b58fb931cc2bcd5e6-1024x401.png 1024w, https:\/\/kimamev.com\/wp-content\/uploads\/2023\/01\/c5ec84395fcb3e2b58fb931cc2bcd5e6-300x118.png 300w, https:\/\/kimamev.com\/wp-content\/uploads\/2023\/01\/c5ec84395fcb3e2b58fb931cc2bcd5e6-768x301.png 768w, https:\/\/kimamev.com\/wp-content\/uploads\/2023\/01\/c5ec84395fcb3e2b58fb931cc2bcd5e6-1536x602.png 1536w, https:\/\/kimamev.com\/wp-content\/uploads\/2023\/01\/c5ec84395fcb3e2b58fb931cc2bcd5e6.png 1822w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\"><a href=\"https:\/\/www.kline.co.jp\/ja\/ir\/finance\/cashflow.html\">Citation\u3000K lines HP<\/a><\/figcaption><\/figure><\/div>\n\n\n<p>In 2022, operating cash flow is expected to increase significantly, while financing cash flow is largely negative, mainly due to dividend payments.<\/p>\n\n\n\n<p>(The company paid a dividend of 600 yen per share in FY2022, compared to no dividend in FY2020 and FY2021.)<\/p>\n\n\n\n<p>Even with such a large dividend payment, the amount of cash is steadily increasing.<\/p>\n\n\n\n<p>In addition, investment cash flow is highly variable from year to year due to the nature of the shipping industry, which requires large-scale investments. Examples of large investments include the construction of cargo ships and offshore development (e.g., new liquefied gas projects and FPSOs).<br><\/p>\n\n\n\n<h2 class=\"is-style-st-heading-custom-diagonal has-background\" style=\"background-color:#d0eff2\"><span id=\"Annual_income_of_employees\"> Annual income of employees<\/span><\/h2>\n\n\n\n<figure class=\"wp-block-table is-style-st-table-line-2\"><table><tbody><tr><td><\/td><td>Net sales<\/td><td>Number of employees (consolidated)<\/td><td>Number of employees (non-consolidated)<\/td><td>average annual income<\/td><\/tr><tr><td>NYK<\/td><td>2280775[Millions of yen]<\/td><td><span class=\"st-mymarker-s-b\">35081<\/span> persons<\/td><td>1308 persons<\/td><td><span class=\"st-mymarker-s-b\">10.82 million yen<\/span><\/td><\/tr><tr><td>Mitsui O.S.K. Line<\/td><td>1269310[Millions of yen]<\/td><td>8547 persons<\/td><td>1098 persons<\/td><td><span class=\"st-mymarker-s-b\">10.72<\/span><span class=\"st-mymarker-s-b\"> <\/span><span class=\"st-mymarker-s-b\">million yen<\/span><\/td><\/tr><tr><td>\u201cK\u201d&nbsp;LINE<\/td><td>756982[Millions of yen]<\/td><td>5390 persons<\/td><td>821 persons<\/td><td><span class=\"st-mymarker-s-b\">9.90 million yen<\/span><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>The annual income of employees at all three companies is quite high.<\/p>\n\n\n\n<p>NYK Line has an outstandingly large number of employees on a consolidated basis (35,081), and its affiliates and subsidiaries seem to have a large number of employees, perhaps due to its wide-ranging business activities on land, sea, and air.<\/p>\n\n\n\n<p>&#8220;K&#8221; LINE&#8217;s number of employees relative to its sales is quite small. While NYK&#8217;s sales are about one-third of the company&#8217;s total, the number of consolidated employees is about one-sixth. The same is true for Mitsui O.S.K. Line, where sales per employee are Mitsui O.S.K. Line \u2248 &#8220;K&#8221; LINE &gt; NYK.<\/p>\n\n\n\n<p>&#8220;K&#8221; LINE&#8217;s ROE is 117%, the highest among the three companies.<\/p>\n\n\n\n<h2 class=\"is-style-st-heading-custom-diagonal has-background\" style=\"background-color:#d0eff2\"><span id=\"Future_Outlook\">Future Outlook<\/span><\/h2>\n\n\n\n<p>The shipping industry is enjoying unprecedentedly strong financial results, but freight rates for both liner and tramp vessels are on a downward trend, and profits in FY2024 are not expected to be as high as those in FY2022 and FY2023. In the financial results for the fiscal year 2023, the majority of the full-year earnings were generated in the first half of the year when freight rates soared, and profits in the second half of the year are supported by the weak yen.<\/p>\n\n\n\n<p>All three companies are currently in a very good economic situation with dividend yields of nearly 10%, but we will continue to focus on how the coming economic downturn will affect the financial results of the three shipping companies.<\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>This section compares the sales and business activities of the three major Japanese shipping compani &#8230; <\/p>\n","protected":false},"author":1,"featured_media":241,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_locale":"en_US","_original_post":"https:\/\/kimamev.com\/?p=225"},"categories":[10],"tags":[],"_links":{"self":[{"href":"https:\/\/kimamev.com\/wp-json\/wp\/v2\/posts\/347"}],"collection":[{"href":"https:\/\/kimamev.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/kimamev.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/kimamev.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/kimamev.com\/wp-json\/wp\/v2\/comments?post=347"}],"version-history":[{"count":12,"href":"https:\/\/kimamev.com\/wp-json\/wp\/v2\/posts\/347\/revisions"}],"predecessor-version":[{"id":575,"href":"https:\/\/kimamev.com\/wp-json\/wp\/v2\/posts\/347\/revisions\/575"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/kimamev.com\/wp-json\/wp\/v2\/media\/241"}],"wp:attachment":[{"href":"https:\/\/kimamev.com\/wp-json\/wp\/v2\/media?parent=347"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/kimamev.com\/wp-json\/wp\/v2\/categories?post=347"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/kimamev.com\/wp-json\/wp\/v2\/tags?post=347"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}