Supply Chain Research

The Japanese container-lines started the calendar fourth quarter earnings season with disappointing results. While all three did better than expected at the revenue line, K-Line and NYK did so by boosting volumes handled. That, combined with higher fuel costs, resulted in disappointing profitability with EBITDA margins of 3.9% for K-Line (vs. 5.4% expected) and 5.8% (vs. 8.2% forecast by analysts) for NYK. That miss led both to cut their full year profit forecasts, and underlines our concern for this year that pricing and capacity discipline are a risk in the current rising fuel price en...