Mitsui O.S.K., Asian Shipping Lines Fall on Rate Drop

04.09.2008 (12:57)

Mitsui O.S.K. Lines Ltd., Japan's largest operator of iron-ore ships, fell the most in seven months in Tokyo trading, leading Asian shipping lines lower, as rates for carrying commodities declined.

The shipping line dropped 7.3 percent to close at 1,116 yen as of the close Tokyo trading today. China Cosco Holdings Co., the world's largest operator of dry-bulk ships, declined 6.2 percent to HK$12.40 in Hong Kong, Bloomberg reports.

Lower demand for iron-ore from China helped push the Baltic Dry Index, a measure of commodity-shipping costs, down 5 percent yesterday, the biggest decline in almost three months. A drop in the price of benchmark steel products from a record in June is also reducing producers' incentives to make the metal.

Mitsui O.S.K. made 91.9 percent of its operating income from shipping commodities in the year ended March 31.

Nippon Yusen K.K., Japan's biggest shipping line by sales, declined 5 percent. Nippon Yusen earned 88.3 percent of its operating profit from shipping commodities last fiscal year.

Kawasaki Kisen Kaisha Ltd., Japan's third largest shipping line, dropped 5.9 percent to 652 yen. China Shipping Development Co., the nation's biggest oil carrier, fell 5.1 percent to HK$15.32.

China's steelmakers have been asked by the government to reduce stockpiles of the mineral to ease port congestion.

China's prices of hot-rolled steel sheets have fallen 12 percent from a record on June 5.
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