I was in Seoul, Korea from Dec 12to 28, 2011 to attend EFI’s partner company, Kukdong MES’ annual meeting. Seoul was in 11 degree C below zero in the wave of extremely cold weather. There were many icy roads so that it was dangerous to walk. It was about one week later after Kim Jong Il died. I feared that there could be some change in life of the citizen in Seoul. However, there was no change at all. They seemed to live as usual. His death had not become the topic in the meeting.
Young Korean staff representing from each overseas office made the presentation of 2011 result before their Headquarter staff including the President and they thoroughly discussed their result and would come to set up the next year’s target. It was not purposed for a personal attack. I felt the warm support to the overseas staff who are working as the business warriors overseas for the company.
I have sometimes felt that the spirits of Confucianism have been continuously transferred from generation to generation in Korea which will make the bond of Korean society stronger. On the other hand I was interested in hearing that many young Korean thought that the current Japan would be their future figure in good or bad senses. I will see Korean warm heart in serving Kimchi (Pickles) and you can eat it as much as you like at free of charge if you order even one Korean dish in the restaurant. I have been happily enjoying their hospitality there. This Korean warm heart should be shared by North Korea people as well. Thus, I wish Korea would be successfully joined together with North Korea in the near future.
At the beginning of the year I would like to confirm that EFI’s plan of action this year will continuously stay as the excellent matchmaker. The business should be coordinated to deliver the quality products with good service to the customers who need it. As a result it will make our customers feel happy through doing business with EFI. Therefore, I would like to continuously deliver my monthly report cheering up my readers.
In one New Year’s party I gave the young person my frank advice. “Please think of others if you don’t money”. Young people today (please forgive me to say so because I am old enough) seem to be good at getting along with friends but they don’t have the sense of what I am referring to. I really wish to say that “You should think of others even if you are rich”. Thinking of others a little bit would make people around you pleasant and would make them forward looking. This is my precept. I was the leader of a group when I was child and I caused my parents lots of trouble. However, I was not a bully. I was told by my elementary school friends that they had been still thanking me for my help. I have been learning such thinking of others in the process of my growth by experiencing discord and imbroglio in human relations. Thus, I sincerely would like to request young people today to consider “thinking of others”.
Leasing companies have been enjoying higher utilization such as 97~98% at present. They have no old containers to sell for the time being. The Luna New Year will start on Jan 23 this year. The cargo rush used to be seen before the Luna New Year but this year seems to miss it. Most all shipping lines have drastically fallen in loss at the second half of the last year. Therefore, they should stay away from the order of the new production even if the new production price has been lower. Meantime, the several shipping lines had to have taken the large number of 20f under Long Terms from leasing companies in late of last year. Thus, many leasing companies have been placing an order mainly for 20f with Chinese makers. As a result, the new container price has been increasing to $2,400 per 20f level after hitting $2,300 per 20f at the bottom. Leasing companies will not hesitate to ask shipping lines for one year minimum days in the places where 20f stock are low.
This sudden demand of 20f would be brought by downsizing cargo after devaluing Euro after slow economy caused by financial crisis in Europe and the weak dollar aiming at expediting export from USA? And or decentralizing the risk of Just-In-Time system by relocating their part supply? Leasing companies are keeping 40f Hi-cube stock for many months in the factories in China which was ordered the first half of the last year.
Restoration work in the area seriously damaged by flood in Thailand since last Oct has been kept shipping lines busy in the new cargo movement, especially for Special Containers (Flat Rack Container, Open Top Container). The explosion of the cooling machine of Reefer Containers in USA last year has brought leasing companies large number of Long terms of Reefer containers.
The world is now in a great turmoil over the issue of the possible blockade at the strait of Hormuz by Iran. If it would be closed it would cause various political problems to the related countries. It would naturally change the flow of cargo in international trade which would also force shipping lines to relocate their in-fleet containers at better places. This year is the election year of the world political leaders in Russia, France, USA and China. The Olympic game will be held in London from July 27 to Aug 12. This year could be the year of change. USA unemployment ratio has been improved to 8.5% in Dec. 2011 and her GDP growth ratio from Oct to Dec, 2011 would be expected up to 3% level which would be good to the world economy. China will expect their GDP growth ratio to be maintained at 7% level. The winter bonus paid in Dec. 2011 by Japanese manufacturing industry has been increased from the previous year for 2 years on end which has been pushing strong Yen against US dollar in exchange rate like $1.00=\75 level. The money of 23 trillion Yen is expected to spend for rebuilding the disaster-stricken area after East Japan Great Earthquake for coming 10 years. Therefore, I would be optimistic about the world economy that it would be picking up toward the end of year even if Europe would be stagnated for a while.
Hyundai Merchant Marine (HMM) has decided to obtain 50x40f Hybrid Open Top from Future Box Corporation (FBC) who has the patents of Hybrid Open Top and Sliding Door Containers. HMM expects to deliver them in Feb. 2012. Meantime, Hanjin Shipping had considered leasing 150x20f Hybrid Open Top Container under L/T. But they gave it up this time. Korean shipping lines’ aggressive attitude should be deserved greater attention. FBC has already gotten several world major shipping lines to tentatively use 50x20f Hybrid Open Top. Thus, it would be the proof that major shipping lines have admitted advantages in Hybrid Open Top of FBC. Sliding Door would get popular among many shippers. Easier loading and unloading especially for Sliding Door on the side. Sliding Door on rear would be far safer than the usual double doors container in point of view of protecting cargo from theft. In addition, Sliding Door could save time by 25% in opening and closing the door. It would be only a matter of the time before Sliding Door Containers will replace the usual double door containers. We would like to continuously promote Hybrid Open Top and Sliding Door Containers to shippers, shipping lines and trucking companies.
Lastly this year would be the challenging year to EFI because we will have 2nd hand containers in stock to aggressively cope with the various requests of our customers. In the past 2 years EFI used to take attitude like production to order but we would like to get our customers deeply satisfied with our good quality 2nd hand containers. At the same time we would like to make an effort to expand and to create more demand for 2nd hand containers in the market. In order to provide our customers with better service we would like to add several excellent staff to EFI this year.