May 2--JAPANESE shipping giant Kawasaki Kisen Kaisha ("K" Line) has declared an annual net loss of JPN139 billion (US$124 million) drawn on revenues of JPN1.03 trillion, down 16.9 per cent year on year.

　　In the containership business, cargo on the Asia-North America services recorded an 11 per cent increase year on year, while cargo volume loaded on the Asia-Europe services recorded an increase of two per cent, said the company statement accompanying the annual results.

　　"Cargo volume loaded on the north-south services also increased by seven per cent year on year, while the intra-Asia service was the same level year on year as the result of service restructuring focused on profitability, said the "K" Line statement.

　　Overall cargo volume increased six per cent year on year. "Although the freight rate market turned favourable in the final stretch of the fiscal year, reflecting steady cargo movements, the gap between vessel supply and demand is yet to be fixed and reduced revenues year on year led to a loss larger than the previous year," it said.

　　During the fiscal year ending March 31, the global economy was a year of great changes influenced by factors, such as concerns about a slowdown in Chinese economic growth, confusion in financial markets due to the UK's vote to leave the EU, and establishment of the new government in the US, said "K" Line.

　　"The US economy made solid movement, despite sluggish start at the beginning of the fiscal year, as expectations of fiscal expansionary policy being brought in the new government saw an uptick in private consumption and corporate investment activities.

　　"Conversely, the European economy was temporarily in confusion due to the UK's vote to leave the EU, but it gradually settled, with a slight recovery in the latter half of the year, led by an increase in private consumption due to an improvement in Employment figures," said "K" Line.

　　The Chinese economy was quiet, mainly buoyed by infrastructure investment, in spite of a slowed rate of growth. Also, the agreement between major oil producing countries to reduce production saw a rise in crude oil prices, and other resource prices firmed; however, the economic recovery of developing nations, and resource-rich nations in particular will take some time.