Container market Report March 2012

March 11, 2012 is the first anniversary of the Great East Japan Earthquake of Magnitude 9 attached Tohoku Region in Pacific Sea side. Total 20,000 people have died and still missing. About 350,000 people has still evacuating from the disaster-stricken area. The heap of rubble yielded in 3 Prefecture of Iwate, Miyagi, Fukushima has come to 22.528 million tons of which 94% has been untouched there. Government try to dispose them by the end of March, 2014 but it has caused a big trouble for recovery and reconstruction. In addition, it would be a long battle against the time to decontaminate radioactive area caused by Fukushima Nuclear Power plant. The after-effect of the big earthquake has been quite serious. Government has been agonizing over how to deal with recovery and reconstruction. The Democratic Party of Japan (DPJ) would be not qualified to control the crisis for the nation properly because of less experience of 2 and a half years after taking over the Liberal Democratic Party of Japan (LDP) on Sep.2009 who had governed over 50 years after World War II. This would be unfortunate for the people of the stricken area.

Recovery and reconstruction for the disaster-stricken area should leave to the people living there, local government and the private sectors. All people living there, local government and the private sectors know well what to do the best. I believe that it would not only make the area revitalize but make it put down roots in more democratic in local administration. Now Japan needs it.

In the meantime, I would like to propose how to handle the heap of rubble in Iwate Pre., Miyagi Pre., and Fukushima Pre. ISO Container would be suitable to temporarily stuff rubble. 20F container could load up to 28 tons. 2 ton flexible bag would be simply loaded max.14 bags. 10 bags would be possible by considering aging of container. It would be piled up to 2 or 3 layers like the container terminal in the port as necessary. It would be the effective method to utilize the limited space. In addition, it would be movable anytime and anywhere. This point should be worthy of attention.

The number of New Containers storing in factories all over China seem to have been reduced up to 300,000 teu. The selling price to the major leasing companies would be $2,400 per 20F which would be a little in uptrend. It is said that the inquiry from shipping lines would increase these days. Leasing demand by shipping lines before the freight rate hike seem to have been seen as shipping lines will plan the freight rate hike from April for Asia to Europe and Bunker Surcharge for North America. Leasing companies enjoying 95~98% utilization will aggressively purchase new containers this year.

The major shipping lines in one alliance will operate ships in cooperation with shipping lines of other alliance from March onward in order to improve operation of ships more efficient.

■Grand Alliance NYK belongs and The New World Alliance MOL belongs.
■CKYH Alliance K Line belongs and Evergreen Shipping
■MSC and CMA-CGM

The world economy seems to have been positively improving. European Central Bank will provide European Banks (800 banks) with the fund of over 100 trillion Yen including 2nd fund money of (529.5 billion Euro = 57.2 trillion Yen) as well as 1st fund of 489.2 billion Euro decided in Dec, 2011. United States Department of Commerce has revised their preliminary statistics of growth ratio from Oct to Dec in 2011 0.2% upward to 3%. The unemployment ratio has been improved to 8.5% for 5 months on end. President Obama try to aim at strong USA with many manufactures to come back to USA by lowering the corporation tax less than 25%. Meantime, the surplus money has pushed up by 9% MSCI World Index which shows the movement of the stock in the world comparing with early this year. Japan will budget 23 trillion Yen as the fund of recovery and reconstruction for coming 10 years. The Nikkei Stock Average has been close to 10,434 Yen which was recorded before the earthquake, reflected by improving the profit of Japanese companies. The dividend on shares ending at March 2012 of Japanese companies listed in Tokyo Stock Market will reach 5.5 trillion Yen which will be in the highest level for 3 years.

Changing the subject, U.S.Customs and Border Protection (CBP) planed to enforce ISO17712:2010(E) from Mach by replacing ISO PAS17712 of the Mechanical Seal to seal container but postponed until they could get the clear proof coping with ISO17712:2010(E) on tampering from third party. The new seal criteria requests the evidence, procedure, proof of tampering and minimum diameter 18mm on the bolt head and internal lockbody. This would be very important for USA to protect by terrorism. Container should be protected from illegally opened once sealed.

In regard to security the security seal of TydenBrooks such as Intermodal II Bolt Seal and Intermodal IV Bolt Seal have all passed the requirement of ISO17712:2010(E). EF International is their agent in Japan. SuperBolt4 has been guaranteed by Dayton T. Brown, the bolt seal test company that their Mechanical Tests in Tensile, Shear, Bending, Impact prove SuperBolt4 to be over two times as strong as the ordinary High Security Seal. It really fit the expensive cargo and important customers to protect and to make them feel easy. In addition SuperBolt4 could not be cut by the ordinary cutter. They will need the special cutter so that the container will not be easily opened. Their demand is high in the market.

As far as the security is concerned the innovative product of Future Box Corporation such as Sliding Door Container is higher in security than the ordinary ISO double door container and it has met with the requirement of U.S.Customs and Border Protection (CBP). The ordinary ISO double door container has a small projecting steel plate like a nail on the right side door to thrust the edge of the left door. In other words the left door would be easily opened without such small projecting steel plate. However, two door panels of Sliding Door are easily opened and closed with the hinges which are equipped inside so that the door is never opened by tampering. We would like to do our best that US government really would recommend FBC’s Sliding Door Container in the future for anti-theft and easy operation.

We have been receiving good reputation from many shippers how Sliding Door Container, especially for Sliding Door on the side would contribute them to save the cost and the time of loading and unloading cargo. Therefore, we would like to set up the chance for many shippers to use Sliding Door on the rear and side respectively earlier possible.