ONE banking on synergy effects
ONE, the joint venture for container traffic of the three Japanese shipping companies K Line, MOL and NYK, reported a loss of USD 586 million in the fiscal year ending 31 March 2019. Revenues were at USD 10.88 billion. The average exchange rate was JPY 109.48 per USD, and the average bunker price was USD 437/t.
However, ONE did forecast that in the current fiscal year, which runs from 1 April 2019 to 31 March 2020, it will have a profit of USD 85 million on revenues of USD 12.7 billion. Synergy effects are generated by volume discounts through the consolidation of various functions in the three Japanese shipping companies, and cost reductions due to an increase in bargaining power.
ONE said: “We expected around 60% of these to emerge in fiscal 2018, which is the first year, but the latest forecasts suggest that 80% may emerge, and good progress is being made.” (kd)
www.one-line.com
www.kline.co.jp.en