Japan’s Nippon Yusen Kabushiki Kaisha (NYK) could halve its fleet expansion programme following losses forecast for the 2009 fiscal year.

The company recently predicted its loss forecast for 2009 from $55m to $297m.

The company has reduced its vessel acquisition budget to $9bn which will be spent in three years, ending March 2014.

According to NYK, demand in marine services from European and US markets has declined following the global economic slowdown.

Kawasaki Kisen Kaisha shipping firm in Japan has also increased its loss forecast from $340m to $870m for the year ending March 2010.