High Shipping Costs Are Here to Stay, Says Bloomberg
By Henry Ren (Bloomberg) Stubbornly high shipping expenses for businesses are getting sealed into contracts for the next 12 months, forcing companies to pass the extra costs on to consumers....
TOKYO, Oct 1 (Reuters) – Japan’s Kawasaki Heavy Industries Ltd said it would consider a drastic revision of its shipbuilding business due to its worsening profitability and indicated that it may pull out of the business.
The company on Friday revised its profit outlook lower for the business year ending next March, citing a stronger yen against the dollar and a decline in operating profitability from the shipbuilding business.
The company said it would consider what to do with the shipbuilding business including whether to continue the business and aimed to reach a final decision by the end of March.
Global shipbuilding companies have been suffering from a slide in new vessel orders amid a volatile global economy. (Reporting by Osamu Tsukimori; Editing by Christian Schmollinger)
(c) Copyright Thomson Reuters 2016.
Join the 67,585 members that receive our newsletter.
Have a news tip? Let us know.