Nippon Yusen Kabushiki Kaisha - Company Strategy & Performance Analysis
Nippon Yusen Kabushiki Kaisha - Company Strategy & Performance Analysis
SUMMARY
Nippon Yusen Kabushiki Kaisha (NYK Line) is a logistics company that undertakes the transportation of crude oil and related products. The company provides ocean, land and air transport services for the transportation of petroleum products, liquid products, and dry bulk products. Its portfolio includes line trade, air cargo transportation, logistics, liquefied natural gas (LNG), liquefied petroleum gas (LPG), and chemical transportation.
Additionally, NYK Line is involved in the bulk shipping business, including the transportation of cars, development of car terminals, and construction of inland transportation networks. The bulk shipping segment contributed 37.3% of the company’s total revenue. It also operates luxury cruise ships, and manages commercial and residential buildings. The company, through its subsidiaries, operates in Europe & Africa, South Asia, East Asia, Japan, Oceania, North America, and South America. NYK Line is based in Tokyo, Japan.
MarketLine Premium’s company strategy reports provide in-depth coverage of the performance and strategies of the world’s leading transport and logistics companies. The report details company operations in key geographies and offers a comprehensive analysis of each firm’s growth strategy and financial performance. The reports benchmark company performance via key indicators, including air freight revenue, sea freight revenue, air freight volume, sea freight volume, operating income, net income, Total revenue.
KEY HIGHLIGHTS
Weak market conditions in the first half of FY2016 led revenue of the air cargo transport segment to decline
Revenue of air cargo transport declined at rate of 0.2% from US$699.7m in 2015 to US$698.2m in 2016. In actual currency, it declined at 10.3%. The decline was primarily attributed to poor airfreight market conditions, which have recorded a downward trend since December 2015. However, from September 2016, the market recovered due to strengthening cargo movements for IT-related cargo and machinery.
Low demand for automobile and liquid transport resulted in the decline in revenue of the bulk shipping segment
Revenue of the bulk shipping segment declined at rate of 11.5% from US$7,445.9m in 2015 to US$6,585.9m in 2016. In actual currency, revenue declined at 20.5%. This was primarily attributed to low demand for the automobile transport market; demand for automobile shipments to resource-rich countries slowed down as the prices of resources reduced, leading to fewer vehicles shipped in comparison to the previous year. Low east-west shipping traffic with petrochemical tanker shipments is also a key factor to contribute to the decline in revenue.
Lower freight rates led the liner trade segment’s revenue to decline
The revenue of the liner trade segment decreased at 7.9% from US$5,761.3m in 2015 to US$5,263.3m in 2016. In actual currency, revenue declined by 17.2%. This was primarily attributed to lower freight rates for container shipping. Spot freight rates declined to historically low levels during the first quarter of the FY2016; however, this was partially offset by increased shipping traffic and gradual recovery on North American and European shipping routes. Despite this, market conditions remained severe across Asian routes.
SCOPE
SUMMARY
Nippon Yusen Kabushiki Kaisha (NYK Line) is a logistics company that undertakes the transportation of crude oil and related products. The company provides ocean, land and air transport services for the transportation of petroleum products, liquid products, and dry bulk products. Its portfolio includes line trade, air cargo transportation, logistics, liquefied natural gas (LNG), liquefied petroleum gas (LPG), and chemical transportation.
Additionally, NYK Line is involved in the bulk shipping business, including the transportation of cars, development of car terminals, and construction of inland transportation networks. The bulk shipping segment contributed 37.3% of the company’s total revenue. It also operates luxury cruise ships, and manages commercial and residential buildings. The company, through its subsidiaries, operates in Europe & Africa, South Asia, East Asia, Japan, Oceania, North America, and South America. NYK Line is based in Tokyo, Japan.
MarketLine Premium’s company strategy reports provide in-depth coverage of the performance and strategies of the world’s leading transport and logistics companies. The report details company operations in key geographies and offers a comprehensive analysis of each firm’s growth strategy and financial performance. The reports benchmark company performance via key indicators, including air freight revenue, sea freight revenue, air freight volume, sea freight volume, operating income, net income, Total revenue.
KEY HIGHLIGHTS
Weak market conditions in the first half of FY2016 led revenue of the air cargo transport segment to decline
Revenue of air cargo transport declined at rate of 0.2% from US$699.7m in 2015 to US$698.2m in 2016. In actual currency, it declined at 10.3%. The decline was primarily attributed to poor airfreight market conditions, which have recorded a downward trend since December 2015. However, from September 2016, the market recovered due to strengthening cargo movements for IT-related cargo and machinery.
Low demand for automobile and liquid transport resulted in the decline in revenue of the bulk shipping segment
Revenue of the bulk shipping segment declined at rate of 11.5% from US$7,445.9m in 2015 to US$6,585.9m in 2016. In actual currency, revenue declined at 20.5%. This was primarily attributed to low demand for the automobile transport market; demand for automobile shipments to resource-rich countries slowed down as the prices of resources reduced, leading to fewer vehicles shipped in comparison to the previous year. Low east-west shipping traffic with petrochemical tanker shipments is also a key factor to contribute to the decline in revenue.
Lower freight rates led the liner trade segment’s revenue to decline
The revenue of the liner trade segment decreased at 7.9% from US$5,761.3m in 2015 to US$5,263.3m in 2016. In actual currency, revenue declined by 17.2%. This was primarily attributed to lower freight rates for container shipping. Spot freight rates declined to historically low levels during the first quarter of the FY2016; however, this was partially offset by increased shipping traffic and gradual recovery on North American and European shipping routes. Despite this, market conditions remained severe across Asian routes.
SCOPE
- Company Snapshot - Details key indicators and rankings of NYK Line in terms of revenue, air freight volume, ocean containers and total warehouse space.
- Company SWOT Analysis - Outlines NYK Line's strengths, weaknesses, and opportunities and threats facing the company.
- Growth Strategies - Provides an overview of NYK Line’s corporate goals and strategic initiatives and evaluates their outcomes.
- Company Performance and Competitive Landscape - Analyses the company’s performance by geographical segment and provides a peer comparison on parameters such as revenue and market share.
- Key Developments - Showcases NYK Line's recent corporate events and initiatives.
- ICT Spending Prediction - Details how the company allocates its ICT budget across the core areas of its business, specifically hardware, software, IT services, communications and consulting.
- How does NYK Line ranks among its peers in terms of revenue and market share?
- What are NYK Line's main growth strategies and how successful has the company been at implementing them?
- How has the company performed since 2014?
- How has NYK Line performed in comparison to its main competitors?
- What are NYK Line’s strengths and weaknesses and what are the opportunities and threats it faces?
Company Snapshot
Company SWOT Analysis
Growth Strategies
Company Performance
Competitive Landscape
Deals
Key Developments
ICT Spending Predictions
Financial Summary
Appendix
Company SWOT Analysis
Growth Strategies
Company Performance
Competitive Landscape
Deals
Key Developments
ICT Spending Predictions
Financial Summary
Appendix
