NYK’s Guidance Cut a Second Canary In The Bunker Fuel Mine — Panjiva


NYK’s Guidance Cut a Second Canary In The Bunker Fuel Mine

Corp - Shipping 610 Earnings 365 Global 723 Mode - Containerized 1006 Mode - Seaborne 1275

NYK Line has cut its earnings guidance for fiscal 2019 by 59% in response to rising bunker fuel costs (17% increase in its assumption), higher demerger costs for Ocean Network Express and airfreight disruptions. NYK Line had been doing better than fellow ONE member K-Line in terms of profitability (EBITDA margin) at 4.5% in calendar 1Q vs. 3.8% for K-Line. It had also been recovering more quickly than Mitsui-OSK with a 0.7% point increase vs. MOL’s 2% point decline. That follows Hapag-Lloyd’s fuel-and-rate driven guidance reduction and would suggest that other container-lines will follow...

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