Kawasaki Kisen Kaisha (K Line) expects to lose JPY50bn ($447m) from the restructuring of its dry bulk shipping business.

“As a result of the stagnation in cargo movement in dry bulk business due to the slowdown in the Chinese economy becoming clearer, and decline in demand for resources, market conditions reached their lowest level ever,” K Line said.

In response to these conditions it said it had accelerated the rationalisation of its dry bulk fleet, with a focus on the smaller-to-medium sizes.

As a result it estimated loss of JPY50bn comprising “additional disposal of some of our own fleet, early termination of charter agreements, impairment loss of some of our dry bulk vessels”.

Adding investments loss in Q4 ended 31 March 2016 of JPY8.36bn K Line said it now expected to report a loss of JPY50bn for the year, compared to a previous forecast of a JPY5bn profit.

The move follows an announcement earlier in the week by fellow Japanese shipowner Mitsui OSK Lines (MOL) that it was shutting its Singapore dry bulk arm MOLBC and taking a JPY179.3bn extraordinary loss on restructuring its dry bulk and container shipping divisions.