Container market Report December 2011

I would like to report Intermodal 2011 Hamburg this time.
I left Narita by KLM 862 (11:55) for Hamburg on Nov.27(Sun) to attend the 9th COA member meeting on Nov.28(Mon) and Intermodal 2011 Hamburg from Nov 29(Tue) to Dec.1(Thu). I arrived at Narita at 9 am. I rushed to KLM counter to check in my luggage but there was a long line of people for economy class of KLM counter for check-in. It took one and half hours for check-in and another one hour for inspection for the custom. The boarding procedure had already started after I cleared all.

I fully understood that I would have to wait for 6 hours at Schiphol Airport due to the discount ticket. Schiphol Airport was indeed easy for transit because of the same level of floor to move, just following the boarding gate direction takes you to the gate. Schiphol airport itself is so huge. It looks like strolling in the department store. There were many stores which had been decorated in Christmas sales. Each shop had attracted the travelers to buy for the gifts. The departure time to Hamburg was 9:25 pm. The snack shop near the gate selling the sandwich, beverage etc opened late. It was just one hour from Schiphol to Hamburg. However, the gate counter asked somebody to cancel the flight booking near the boarding time because of overbooking. Somebody applied to it to get the free meal and accommodation for the day. In Japan I could not imagine the overbooking but it seemed to happen frequently as long as the passenger’s reaction was concerned. The airplane arrived at Hamburg at 10:30 pm as schedule. I met Mr. Nam who had already arrived there half an hour before from Seoul by way of Frankfurt.

This year is the 35th anniversary for Intermodal Show. There is the event company to manage it to open once a year among 6 cities of London, Hamburg, Rotterdam, Bilbao, Copenhagen, Amsterdam in turn. Most attendants are regular members. It seems to be important for them to meet each other at the same time of the year to compare the last year with this year easily and to confirm the progress of the matters and events. It is not going too far to say that Intermodal Show is the place where they set up as the final settlement of accounts of the past one year. COA seems to have been created through the communication of people in Intermodal Show.

My purpose of joining Intermodal was to get FBC products popular among attendants such as Hybrid Open Top Container and Sliding Door Container with Mr. Nam, President of FBC. In Intermodal Show in Amsterdam of last year Mr. Nam introduced the real Hybrid Open Top Container and Sliding Door Container to exhibit for the first time. I heard it had gotten a good response from many attendants. Hybrid Open Top will be free from risk of dangerous works of removing and fixing the roof bows and missing the roof bows which would cost a great amount in the year while the ordinary open top container has been suffering from. Sliding Door Container will protect the cargo from stealing of which ordinary container with the double doors could not protect. Sliding Door will be short of 25% in the open and close work. It is quite safe in operation because of the end of the door to move by guiding the pole hiding the door header. The Door Lock companies have been proving by introducing the new door lock devices the ordinary double doors container in danger from stealing. The door hinge of Sliding Door Container is hid inside. Therefore, the door could not open by force unless replacing the whole doors which the cargo is safe.

I always admire Korean people. In Intermodal 2011 Korean people had been also playing the important role. I believe that there is a reason. The container production in Japan (1970~80) to Korea and Korea (1980~90) moving finally to China(1990~ ). There have been many Korean experts to move to China as pioneers and they have been active in the container industry. On the contrary there are few active Japanese people after 20 years, I should dare to say.

Mr. Nam, President of FBC started from Jindo, Korean container maker. He had been travelling in the world to sell the containers to shipping lines, leasing companies, part suppliers etc in his age of 20~30s. I have been impressed to see his personal relationships with people in Intermodal. My career is to have just stayed in the container leasing business over 40 years. I don’t have the wide personal relationships with many people like Mr. Nam. I am confident that people like Mr. Nam will support the container business in the future. His extraordinary thought about container has created the innovative products such as Hybrid Open Top, Sliding Door Container. In Intermodal 2011 they have caught attention of many people in its originality. I am confident that they will replace the ordinary open top container and the double doors container in the near future. It is my great pleasure for me to work with him.

The world economy would continuously drift in the wave of confusion. Shipping lines will endure great hardship such as reduction of cargo, over-tonnage, competition in the freight rate. It would be difficult for them to invest in containers. However, is it possible for them to adopt the innovative products such as Hybrid Open Top and Sliding Container and to appeal their shippers to make themselves different from others besides the rate competition? I believe that most shippers would be more thoughtful than we think.

Singamas would stop their production in Dec and Jan so that the production price would be maintained at the level of $2,000 per 20f for the time being. At present container industry has to be required to be in the right size to fit the current market. On the other hand, the aged ISO containers have been used by the local governments without hesitation as the storage for contaminated ash after incineration. I believe that more aged containers put into 2nd hand market will be utilized more for various purpose of use.