Kawasaki Kisen Kaisha Ltd., a transporter of cars for Toyota Motor Corp. and Honda Motor Co., will scrap six of its car carriers and return another 11 to owners as it slashes its fleet amid a slump in auto demand.
The shipping line will reduce its fleet of ocean-going car carriers to 74 at the end of March 2010, the lowest in about six years, Eiichi Murakami, head of car carriers, said in an interview in Tokyo Monday. It will still take delivery of 10 new car carriers this fiscal year, he said.
The company, which in 1970 launched the world's first car carrying ship, has said profit likely fell 64 percent in the fiscal year that ended Tuesday as demand for shipping cars, iron ore and containers slumped. The shipping line scrapped six car carriers last quarter as vehicle exports tumbled the most on record.