K Line — Japan’s third largest shipping company — reported an 88.8% fall in profits in the first half of this financial year.

The Tokyo Stock Exchange-listed company said profit attributable to the parent outfit fell to ¥63.1bn ($420m) for the six months to the end of September, compared to ¥565.4bn in the same period last year.

Operating revenue also fell by 5% to ¥458.9bn in the half year.

There were falls in profit right across K Line’s main shipping business lines, with dry bulk and box ship earnings hit particularly hard.

Segmental profit in its product logistics division, which includes the results of liner subsidiary company Ocean Network Express, was ¥79.8bn, compared to ¥457bn in the same period last year.

“In the container shipping business, despite entering the peak season, a recovery in cargo movement was weak, and with an increase in the delivery of newbuilding vessels, the upward trend in short-term freight rates did not continue,” K Line said.

K Line’s dry bulk results also saw a considerable dip in profits, falling by 88.5% to ¥2.8bn.

K Line said it is “striving to manage the market exposures appropriately and reduce operation costs and improve vessel operation efficiency”, in response to its dry bulk performance.