K Line has said that while closely monitoring the geopolitical situation, it was confident of an income of some  ¥240bn ($1.5bn) this financial year. 

In a new year letter, the Japanese line’s president & CEO Yukikazu Myochin said the carrier would “strengthen its resilience to market conditions in order to prepare for short-term fluctuations and market conditions”. 

Noting the change of administration in the US, he wrote: “Major changes to trade and energy policies are expected. It will be important to carefully monitor the impact on the economy and how supply chains and demand for maritime transport will change going forward. While there will be heightened uncertainty surrounding geopolitical risks, we will keep a close watch on demand through our partnerships with customers…” 

He pointed to the last year’s implementation of the EU ETS, and the new FuelEU Maritime environment as significant changes, adding: “Even the International Maritime Organization (IMO) has finally gotten into full swing, discussing measures on the introduction of further action encouraging the switch from conventional fossil fuel-driven vessels to zero-emission vessels”. 

However, noted Mr Myochin, the new US president could relax environmental targets. “There are expectations that the change in administrations will result in major revisions to low-carbon and carbon-free trends.  

“At the global scale, I believe the major trend of reducing greenhouse gas emissions will persist, but with regional variations and shifts in timelines expected, we are looking to steadily pursue initiatives to reduce our environmental impact from a medium- to long-term perspective without being swayed by short-term developments.” 

K Line is “speeding up” its attempts to introduce ammonia and methanol as next-gen zero-emissions fuels, and said it was also adopting more energy-saving technologies, including Seawing, an automated kite system that harnesses wind power. 

Mr Myochin also said the carrier had reached the mid-way point of its five-year plan, with revenues of ¥240bn this year, “far exceeding our target ordinary income of ¥160bn for FY2026”. 

It has also raised its cashflow expectations, and has lifted its investment budget from ¥520bn to ¥740bn. 

But, he added: “Amid a turbulent business environment surrounding maritime shipping, let’s remember the need  for restraint during prosperous times and strategic moves during market downturns,” and suggested adopting a disciplined approach to investments that would lead “to the growth of K Line, while maintaining financial soundness and improving corporate value”. 

K Line will also increase its share buybacks. 

“While we benefited from factors such as market conditions and exchange rates, it was the day-to-day efforts of each officer and employee that allowed us to achieve solid performance, particularly in the three growth-driving businesses.” 

He added that K Line would continue to expand, particularly in Asia, and would further focus on staff development.