By Kosaku Narioka
Shares of three major Japanese shipping lines fell sharply in Tokyo on Thursday after their container shipping joint venture announced a $20 billion investment plan, in part aimed at increasing capacity.
Shares of Nippon Yusen KK were down 7.4% at 10,940 yen after falling 8.6% earlier. Shares of Kawasaki Kisen Kaisha Ltd. were down 9.2% and shares of Mitsui OSK Lines were down 7.2%.
Ocean Network Express, the joint venture, said after Wednesday’s market close that it plans to spend more than $20 billion in the year ending March 2031 to increase capacity and invest in vessels capable of reduce carbon emissions.
Profits for Japan’s three shipping lines have benefited from a tight container market in recent quarters as the pandemic disrupted supply chains but boosted maritime demand for e-commerce.
Net profit for Ocean Network Express was $11.65 billion for the nine months ended December, up sharply from $1.63 billion a year earlier.
Nippon Yusen holds a 38% stake in the joint venture, while Kawasaki Kisen and Mitsui OSK each hold a 31% stake.
Write to Kosaku Narioka at [email protected]
(END) Dow Jones Newswire
March 24, 2022 01:31 ET (05:31 GMT)
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