Japanese shipping giant "K" Line earned 15 per cent more revenue in fiscal 2006, but posted a 28 per cent profit loss for the year ending March 31, 2007 after net earnings fell to JPY639 billion (US$5.3 billion) from the JPY886 billion the year before.

"Consolidated operating income decreased JPY26.6 billion from the same period last year, substantially affected by record-high fuel oil prices and declining freight rates in containerships on European routes," said a company statement.

Consolidated ordinary income declined JPY24.6 billion compared with the same period of the preceding year to JPY63.9 billion, "K" Line said.

In the containership business for fiscal 2006, overall cargo movements in the Asia-North American services grew favourably since those in the movement of general consumer goods strongly increased and cargo movements from Asia grew about 10 per cent year on year despite sluggish growth in the transportation of housing-related goods that had been a leader in cargo movement in the past years, the company said.

"In Europe, cargo movements in the Mediterranean Sea Services steadily increased, and those for North Europe - particularly Russia - also sharply hiked," said the "K" Line statement. "Consequently the company exchanged vessels on regular services with larger ones. As a result tonnage in European services increased 12 per cent year on year."

Dry bulk freight rates for larger ships remained substantially high from June 2006, benefiting from increased imports of iron ore by China by about 50 million tons year on year to 326 million tons, the company said.