MITSUI OSK Lines has raised its profit forecast for the 2024 fiscal year to ¥350bn ($2.3bn) following a 63.6% net profit in the first half, driven by robust performance in the containership and energy shipping sectors.

Compared with the previous profit forecast of ¥335bn for the 12 months ending March 31, 2025, the Japanese shipping giant made upward adjustments due to a more optimistic outlook for the product transport sector, which includes containerships, car carriers and terminals, while anticipating challenges in the dry bulk business.

Because of a massive delivery of newbuilding capacity, containership spot rates had peaked and were expected to normalise to pre-pandemic levels toward the end of the financial year, MOL said.

But with the rates surge in the first half of the fiscal year from April to September, the company has raised the full-year profit forecast for container sector to ¥157bn from its previous forecast of ¥139bn.

Ocean Network Express, a Singapore-based joint venture in which MOL holds a 31% stake, boosted its full-year profits to $3.1bn following a remarkable 969% year-on-year surge in net profit during the second quarter to nearly $2bn.

The car carrier sector is projected to maintain steady profits, with potential port congestion due to seasonal factors and cargo movement slowdowns from inventory adjustments, despite anticipated strong shipping demand, MOL said.

In the energy sector, the production cuts by Opec+ and a decrease in Chinese domestic demand are leading to a temporary market decline. Consequently, MOL has adjusted its profit forecast downward for tankers, although it said crude oil tankers and product tankers are expected to remain firm with the effect of geopolitical risks, in addition to stable profits from long-term contracts.

The full-year profit forecast for the dry bulk sector has been revised down to ¥18bn from the previous ¥22bn. This adjustment is attributed to one-time costs for vessel purchases, increased operational expenses, and the anticipated decline in rates for capesizes.

MOL expected steady shipments of iron ore and bauxite in the capsize market towards the year-end but also forecast a temporary rates decline starting from the beginning of next year due to Brazil’s rainy season.

Shipping demand for North American grain and heating fuel for the remainder of the year will bolster the rates of panamax bulkers and smaller vessels, but MOL has predicted a decline starting next year.

During the first half of the fiscal year ending in September, MOL reported a net profit of ¥246.6bn, compared to ¥150.7bn earned in the same period of the 2023 fiscal year.