Japanese carrier Mitsui OSK Lines (MOL) has forecasted a loss of US$1.5 billion for the 2015/2016 financial year, according to IHS Fairplay.
The expected loss marks a significant decline in comparison to the outlook predicted for the previous financial year announced in October, 2015 which forecasted a $140 million profit.
MOL said in a statement: “We expect to record an extraordinary loss of up to approximately $1.5 billion in the fourth quarter of this fiscal year due to costs for the business structural reforms, including disposal of vessels in the dry bulker and container ship businesses.”
The shipping industry is currently going through a turbulent period, in which global demand is slumping and carriers are struggling to cope financially.
Many have begun to consolidate volumes and opt into vessel-sharing agreements in order to benefit from economies of scale and to stay ahead of the competition.