I happened to have a chance to visit the 2nd day of “Sea Japan” of International Maritime Exhibition and Conference held in Tokyo Big Sight Exhibition Center from April 18 to 20. It is held every two years. The enthusiasm had been filled in the venue because of the 10th anniversary. According to the promoter 466 companies from 27 countries and areas had exhibited, of which 185 companies attended from overseas. Japan depends over 99% of the trade volume on the ship. Japan accounts for 16% of the world marine trade. It is necessary for us to recognize the present situation in Japan again. How much do we Japanese usually recognize this? As a national commitment to the marine transportation I wish Japan could provide the world with the superior products for marine industry and Japan could continuously contribute to the world to the large extent. I wish “Sea Japan” of International Maritime exhibition and Conference more successful and prosperous in the future.
In the meantime, I joined the 3rd symposium hosted by Japan Long Course Ferry Service Association (headed by Osamu Suzuki) on April 27 in the Marine Club in Hirakawa-cho on the theme of the long course ferry to share the responsibility of the transportation in the large scale of disaster. This symposium was the first one since they have been changed from a private association to an incorporated one on April 2. As a result, I joined in the two different events at the same period but Sea Japan for the overseas and the symposium for Japan. There is the same concept for both events that Japan is a country surrounded by the see and could not exist without the ships as the transportation. The share of the costal shipping accounts for 32% of domestic freight transport in Japan. I would reflect that I had been focusing my attention on mainly the shipping business for overseas until I attended the symposium.
It took a long time for the government to have advocated the modal shift from the automobile to the railroad and the costal shipping in order to reduce CO2. In comparison with the freight transport per ton-kilometer the ratio of the costal shipping has been reduced from 45% of 1990 to 32% of 2009. In the meantime, the costal shipping has contributed to a great extent in dealing with wreckage after the East Japan Great Earthquake in March, 2011 and the Typhoon 12th landed on Kouchi Pref., Okayama Pref. in Aug.2011. The costal shipping would be expected to be great help as the effective transportation and powerful backup support after the roads made impassable in the large scale of disaster. The large-sized ferries could provide with mass transportation of subsistence goods, aiding refugees, large accommodations and the places for medical treatment. In view of Japan to be subject to numerous natural disasters including the earthquakes it is the time that the government should take it up seriously that the long course ferries could share the responsibility of transportation in the large scale of disaster proposed by Long Course Ferry Association.
The history of the long course ferry service started when Hankyu Ferry launched from Kobe to Kokura in Aug, 1968. This coincided with the first container ship to have gone into service of the California route in Sept, 1968. The long course ferry service has been put into the competition with an automobile and exposed under severe economic circumstance such as the oil crisis, the Yen’s appreciation. However, I think they could be a growing industry if the government would set up the right policy for them such as we would take the initiative in using them when we return to our native places. The long ferry service could invite a large number of the foreign tourists if we could create the situation which we could enjoy cruising from Hokkaido to Okinawa through the long ferry service. At present there are about 1,100 ports which the merchant ships could use in Japan and 130 ports for the foreign ships could call and there are over 3,000 fishing ports in Japan. I think we should make the best of these infrastructures. The government and the people in one body could develop the pleasant cruising trip with the long course ferries enjoying the numerous costal lines which are famous for their scenic beauty of Japan. This means to satisfy the modal shift and at the same time to set up the responsibility of the long course ferries in the large scale of casualty.
Textainer made public their business performance of the first quarter of 2012. Their net income rose 34.2% by adding 20.1% acquisition. Net income amounted $49.9 million. Revenue raised 28.9% to $117.5 million. They acquired 224,000 teu of brand new dry containers and 15,000teu of reefer containers and bought 2,000 teu of managed used containers. The acquisition comes $660 million and their total fleet size is 2,520,608 teu in the first quarter of 2012 in comparison with 2,395,608 teu one year ago. It is redundant but they forecast that the business performance of the whole 2012 would be the highest in their history. Other leasing companies would expect the good result in 2012 as Textainer. Therefore, their operating ratio would stay higher like 97~98%.
New production up to June produced by all leasing companies has been fully booked. The July price has not been opened by the makers yet, but new production price would be something over $2,700 per 20f for June price. New production price would be in uptrend toward the demand season in summer because the container makers would not increase their production capacity. Thus, it is only a matter of time that the container price would be over $3,000 per 20f.
According to the Shipping Guide the April cargo movement from Asia to USA increased 7.3% comparing to the same month of the last year and growth for 2 months on end. In addition this April recorded the highest record in the past 3 years. Shipping lines have been reorganizing their service routes and increasing the number of ships in order to improve their service like acting in concert of the movement. It would bring the need of the containers consequently. Most of shipping lines except a few have stopped ordering their own new production and fully rely on leasing companies. The leasing companies would give them only for long term lease. The shipping companies who could not secure the long term lease containers have to pick up the containers idling in the leasing companies’ depots. The shipping companies will have to accept the unfavorable terms even for the depot containers such as redelivery to the demand area in Asia with one year minimum days required under the seller’s market and additionally pick up charge and drop off charge in balance of power. However, the major European shipping lines and a Chinese shipping line try to have emptied the depot stock where the leasing companies have in the world to prepare for the summer demand. As a result the shipping companies have helped the leasing companies to have no stock in depot in the world which will make them enjoying as the sole winner for a while.