Japanese shipowner Nippon Yusen Kaisha (NYK) saw a slight drop in net profit for the first half of its financial year ended 31 March 2015.

NYK reported a net profit of JPY20bn ($195.1m) for the six month period ended 30 September 2014, compared to JPY20.5bn in the same period a year earlier. Revenues were the six month period were up slightly at JPY1.18tr compared JPY1.09tr a year earlier

Giving an overview of the first six months of the financial year NYK said: “The environment surrounding the shipping industry was generally characterised by soft freight rates caused by an excess supply of vessels. In response, the NYK Group strove to further reduce fleet and operational expenses by rationalizing assignments and further enhancing the fleet.”

NYK’s full year profit forecast remained unchanged at JPY35bn.

Looking ahead the company said: “ In the container shipping business, although cargo shipping demand is currently robust, demand is expected to decline during the slow winter season. Measures are being taken to restore freight rates by reducing assignments on east-west routes, while slow-steaming and other initiatives are being thoroughly implemented to reduce costs.

“In the bulk shipping business, while freight rates are expected to rise by a certain degree in the dry bulk division, since the outlook remains uncertain, the rate assumptions will be revised.”