K Line has unveiled plans to slash its long-term fixed core fleet by over 50 vessels over the next five years.

The Japanese shipowner said on Tuesday that it plans to cut at least 20 vessels within the 2020 financial year, with the remaining 30 vessels set to go by 2025.

This is the second major Japanese owner to announce cuts to the size of their fleet. In June, Mitsui OSK Lines said it was cutting 40 vessels from its fleet, or around 5%, due to Covid-19.

K Line ships facing the chop this year include capesize, panamax and smaller-size bulkers, as well as woodchip carriers, thermal coal carriers and car carriers.

The bulk of the cuts – around 44 vessels – will come from what it described as its “market-exposed” business. The remainder will come from what it said was its “stable income” business.

K Line’s fleet stands at around 460 vessels across all segments, of which 200 are owned and 260 are chartered in as of the end of June 2020.

The shipowner said it wants to increase the percentage of owned or long-term chartered vessels fixed out on stable, long-term charters to around 60% of its business.

News of the new fleet strategy came as the company reported that it had taken an ¥8bn ($75.7m) hit from the Covid-19 outbreak.

As a result, the company reported a first quarter loss of ¥1bn against a profit of ¥7.8bn in the same period last year.

"The spread of novel coronavirus led to lower transport volume, resulting in lower revenues and a loss," Tokyo-listed K Line said.

The company now anticipates breaking even for the full year versus a profit for the last financial year of ¥5.3bn.

K Line said the "first priority" was to implement damage control measures to mitigate the impact of Covid-19 on business results.

"Operational costs are being slashed to meet the decline in cargo volume by reducing fleet size, rationalising vessel allocation, and suspending and laying up vessels," it said.

"Additionally, a sufficient level of liquidity on hand is being secured while assets are being sold to strengthen capital base."