| Annual Report 2000 | (For year ended March 31,2000) |
| Bulk Carrier and Car Carrier Services |
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| Operating revenues from Bulk Carrier and Car Carrier Services for the term under review amount to ¥141,626 million (U.S.$1,334 million), down 15.5%. |
| During the first half of fiscal
1999, tramp markets on the whole continued to be low-key. The markets of large carriers
began to rally in the second half. Space demand rose against the backdrop of increased
production of crude iron and steel in the recovering Asian countries and Japan. It gave
rise to an improvement on the market of large carriers transporting raw materials for iron
production. The medium-sized carrier market also experienced a favorable influence from
the large-carrier market. The small-carrier market could show some sign of recovery to a
limited extent, but actually boiled down to low-key overall throughout the year. Under such a market climate, we poured all efforts toward securing profitable cargo, rearranging our fleet to be more competitive and performing the most efficient ship operations possible. However, the bottom line fell below that of last fiscal year. As to the outlook for fiscal 2000, despite some signs of market recovery being indicated, we have yet to further confirm future developments. To prevail in so unstable or fierce an environment, we will use all possible resources available to rearrange and further strengthen competitiveness of our fleet, placing increased emphasis on securing profitable cargo that will lead to greater stabilization in long-term profitability. |
| Car exports from Japan to North
America, Europe and Australia proceeded with steadiness while those to the Middle East,
South America and Asia stayed low-key. We were able to keep business achievement at the
same level as last fiscal year. With an eye to cross-trades, exports from Thailand and
Australia could expand as expected, but the Atlantic service routes could not be so
active, centering mainly on loadings from Brazil. In total, loaded vehicles decreased a little in number as compared with previous year. As to outlook for fiscal 2000, a 5,000-unit car carrier is to be newly built. Regarding the vehicle transport business, there is a long-term perspective that exports from Japan will be on the decrease since the Japanese makers are further developing production in U.S. and Europe. With this prospect the Company will continue its efforts to strengthen and develop present services in the cross trades and also tap new markets. |