Product Transport Business

Japanese

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Car Carriers

Our car carrier segment offers outstanding quality and highly competitive services, with a wealth of automobile transport experience and knowledge accumulated over many years and a strong emphasis on the safe transport of our cargoes. We are proud to have the world's first hybrid car carrier, which is designed to operate with zero emissions while berthed.



Business Performance of FY2017

Car Carriers Loading ResultsAlthough the transportation volume of completed cars continued to be firm to North America, Asia and Oceania, there are no prospects of a full-fledged recovery to the resource-producing countries under the current climate of sluggish resource prices. Ordinary profit was up from the previous fiscal year due to ongoing efforts to reduce the number of ships and to improve operation efficiency in response to changes in the trade patterns.

Highlights & Strategy

Highlights & Strategy by Operating Segment - from Annual Report
Annual Report 2017: Product Transport Business-Car CarriersPDFPDF(141KB)

Containerships

Today's containerships transport a wide variety of cargoes - from completed products, parts and components, raw materials, to foods, and other general consumer products. This sector continues to see steady growth in step with the development of international outsourcing and rising global population. Our major trade takes place on Trans-Pacific and Asia-Europe routes, and through an international alliance between 6 carriers, we continue to provide high frequency and quality services. We also offer stable, reliable services on trades serving emerging nations in Asia, South America, and Africa, using an extensive network developed during our long history of liner operations.

Business Performance of FY2017

The spot freight market on the Asia-North America routes, although slumping in the first quarter, rose over the summer period with cargo volumes for this fiscal year proceeding at a record high pace. Over winter, the increased pressures of vessel supply caused market weakness, but the market once again began rising during the busy period before the Chinese New Year in February. On the Asia-Europe routes, although there was a significant recovery in cargo volume, this rise was picked up by new deployments of large-sized vessels at each liner company, causing the spot freight rates to remain relatively stable over the entire year. There was also a notable increase in backhaul cargo volumes to Asia. On the Asia-East Coast of South America routes, cargo volumes recovered sharply as a result of a pick-up in the Brazilian economy, and spot freight rates, which sharply rose from the beginning of spring and sometimes spiked largely, made a significant contribution to improving profitability. Needing to make use of the increased space provided by the launches of large containerships, the division energetically secured annual contracts in the beginning of spring, thereby limiting the amount of profits received from spot freight rates, which had risen from summer onward. Although the Company recorded the costs related to a containership joint-venture company (Ocean Network Express Pte. Ltd.) established in July 2017 as equity in losses of affiliated companies, the ordinary loss in the containership business overall was improved year on year by reducing slot cost due to the launches of large containerships, and also the ongoing effects of cost reduction.

Capcity by Trades (Results in FY2015)

Highlights & Strategy

Highlights & Strategy by Operating Segment - from Annual Report
Annual Report 2017: Product Transport Business-ContainershipsPDFPDF(50KB)

Ferries & Coastal RoRo Ships

MOL's three major ferries and coastal RoRo ships companies (MOL Ferry Co., Ltd., Ferry Sunflower Ltd., Meimon Taiyo Ferry Co., Ltd.) link major consumer markets and industrial zones across Japan, offering efficient, comfortable, and reliable services for passengers and cargo alike.

As concerns mount over the environment, our ferries and coastal liners are in the vanguard of the Japanese government's Modal Shift program, which encourages the use of ships and railways as a green alternative to truck transport. Our passenger transport services emphasize convenience and comfort, under the catchphrase "Let's Stay Aboard."(*)

(*)We offer new services such as "Dangan(bullet) Ferry" , arriving destination in the early morning and departing at night without any stay.

Business Performance of FY2017

In the business of ferries and coastal RoRo ships, the cargo volume was firm as a result of further accelerated modal shift, which reflects changes in the trucking labor situation such as shortage and aging of the workforce, and tighter labor controls. The MOL Group has solidly captured the flow of business, such as the firm cargo volume, and carried out promotion activities selling the concept of casual cruises to increase passengers. As a result, operations proceeded firmly, particularly for the Western Japan routes. Nevertheless, due to factors such as a delay in new ferry delivery and higher bunker prices, ordinary profit was down year on year for the business of ferries and coastal RoRo ships overall.

Highlights & Strategy

Highlights & Strategy by Operating Segment - from Annual Report
Annual Report 2017: Product Transport Business-Ferries & Coastal RoRo ShipsPDFPDF(59KB)

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