NYK Line profit slashed to $1.33b in 2025 on tariff shocks, MidEast tensions

NYK Line forecast its recurring profit to decline further in FY2026.

NYK Line’s profit more than halved to $1.33b (JPY211.7b) for the financial year (FY) 2025 from $2.99b (JPY477.7b) in the previous year, according to its financial report.

The group’s recurring profit also fell to $1.32b (JPY211.1b) in FY2025, down from $3.07b (JPY490.8b) a year earlier.

Within maritime operations, liner trade, dry bulk, and energy shipping showed mixed performance, with container shipping accounting for the largest decline.

Liner trade recurring profit fell to $311.3m (JPY49.7b), down $1.41b (JPY224.5b) year-on-year (YoY), with the company attributing the decline to higher vessel capacity, volatile freight rates, and disruptions linked to tariff policy changes and Middle East tensions.

Energy shipping posted a recurring profit of $340.8m (JPY54.4b), up $51.4m (JPY8.2b) from the year prior.

NYK Line said the segment benefited from stronger tanker markets, including very large crude carrier demand linked to Middle East disruptions and changes in trade routes.

Liquefied natural gas (LNG) operations also remained stable under long-term contracts.

Dry bulk shipping reported recurring profit of $59.5m (JPY9.5b), down $53.2m (JPY8.5b) YoY. The company cited improved conditions for major vessel types but lower profitability in smaller bulk carriers and currency effects.

The company operated 912 vessels as of March 2026, including 48 container ships, 134 car carriers, 414 dry bulk vessels, and 303 energy-related vessels, alongside 41 alternatively fuelled vessels, including LNG-fuelled car carriers.

NYK Line forecast recurring profit to decline further in FY2026 to $1.16b (JPY185.0b), down $163.5m (JPY26.1b) YoY.

It expects liner trade earnings to remain under pressure due to continued rerouting via the Cape of Good Hope and sustained geopolitical disruption in the Middle East.

Energy shipping is expected to remain supported by tanker market conditions linked to regional tensions, whilst dry bulk is projected to improve modestly across vessel classes.

The company expects bunker costs to rise sharply in FY2026.

The group continues to expand fleet investment under its medium-term plan, including LNG-fuelled vessels and alternative fuel projects, alongside expansion in core shipping operations.

(US$1 = JPY159.67)