According to the Meteorological Agency the start of the rainy season has been officially declared in Kanto, Koshinetsu, and Hokuriku area on June 9 (Sat). The long spell of rainy weather will stay for a month till early July. The Cloudy sky, rainy day would make us feel gloomy. However, if we think it would be a preparatory period before the energetic summer after getting the beautiful spring leaving it would make me excited. The rainy season is necessary for farmers to cultivate rice. We are told the change of nature by each season and have been enjoying nature. The vivid purple flower of Japanese hydrangea getting wet in the rain in the garden looks precious when I am conscious of myself as a part of nature.
China Container Freight Index (CCFI) reported that the average slot operation ratio of the container ships would be kept 85% for Asia/Europe trade, 90% for Asia/USWC and USEC respectively. However, there are the waiting newly built 251 containerships with 410,000teu slots equal to 2.6% of the all containerships in operation. Feeling of surplus of container slots would bring shipping lines into the freight rate competition subject to the future cargo movement. Most of shipping lines will plan to introduce Peak Season Surcharge (PSS) toward the summer demand. But the freight rate raise would be uncertain like an overcast sky during the rainy season. Therefore, the new production price in China would be around $2,700 per 20f which is as same as the previous month.
The strength of Japanese 3 lines( J3 ) is diversification of their business such as the bulk carriers, tankers, LNG ships, car carrier ships as well as containership. The net investment by NYK at the end of March of 2013 would be reduced 50 billion Yen from 230 billion Yen to 180 billion Yen, MOL to be reduced 24.3 billion Yen from 110 billion Yen to 85.7 billion Yen, K Line to be reduced 33.2 billion Yen from 83.2 billion Yen to 50 billion Yen. They would stop the new investment, would reduce the number of ships in operation and would use more leasing. In addition, they extend the life of ships (especially for LNG ships and large tankers) longer so that they could expect reduction of depreciation expense which would ensure more profit. In the meantime, the car carrier ships business would be promising these days. MOL expects to carry the number of the finished cars of 4.22 million in the fiscal year of 2012 which will be 16% up and the highest in the history. K Line is 12% up to 3.7 million and NYK to be 14% up to 3.32 million.
J3 have engaged in the shipping business for long. MOL will celebrate 134 anniversary in 2012, NYK for 127 anniversary and K Line for 93 anniversary. There are not many shipping lines of such long history in the world. Maersk Line of the No.1 largest ship fleet in the world would be also an old shipping line since foundation of 1904. It is not always good to be old enterprises. I am confident that their tough and vital DNA should have been succeeded by the people working for the shipping lines after long history of their severe competition in the past. I sincerely want J3 to vitalize the shipping industry in the world. Anybody could start the container shipping business any time if they have enough money to buy the ships and to lease containers. It is the fact that Shipping Lines who have a hundred of history could not been built a day. It means that they could be the leader based on credibility, reliance and achievement in the long history. I trust the leader should be the sender of useful information. I want J3 lines to act a good sender inherited DNA for a hundred year. The useful information could not be obtainable if you just wait for. It is simple. People come to you if you could be a sender who could offer anything which people are interested. They would come to ask you for loading the cargo. You should attend the various meetings discussing the topics? I think COA (Container Owners Association) is one of them. 10th COA Members Meeting was held from June 12 and 13 in Seoul but there were no Japanese at all. The rule is made by people. The rule would be automatically set up after people get together and it would become a global standard.
Apart from the low price the swiftness and certainty are the motto of service by shipping lines. J3 lines are already global enterprises. Therefore, we don’t care about where their head offices are located. However, we expect J3 to find the effective way of moving cargo in the world in cooperation with other shipping lines while abandoning the selfish and introverted idea. We would like to request J3 to join setting up the global standard and the rule with other shipping lines. You may insist on no time due to your busy daily work tied up but I think you could make time in any situation if you want. You could not be ignored if you join any meetings of setting up the global standard and the rule. In a good sense J3 should work hard by competing with each other. J3 should make as many supporters as possible in the world. As a result J3 could survive. To win the competition doesn’t mean to take all but to co-exist with others.
MOL will transfer all container function from Tokyo to Hong Kong in July. K Line has moved most of function to Singapore in April. NYK moved the liner HQ to Singapore a few years ago. J3 seem to have been far from the leasing companies in Tokyo in distance. It would be interesting in seeing how each leasing company approach J3 from now on. There has been no severe competition among leasing companies these days like old days because long term leases of J3 seem to be allocated appropriately among a few major leasing companies. Textainer of Japan would be outstanding in their activity. Their number of Long terms and Master lease would be more than 100,000 with MOL and K Line respectively except NYK. Their on-lease quantity with K Line would be No. 1 share among leasing companies managed by Textainer of Japan. They cover Taiwan, Korea as well as Japan as their territory. Their activity field to cover is wider than Tokyo office of other leasing companies who cover only Japan. Textainer office in Japan is located in Yokohama while other leasing companies have an office in Tokyo for many years. It is because of cutting the office cost but the office in Yokohama would be an idea in advance of the times. They used to act different from others but they has grown up No. 1 leasing company in the world by operating over 2.5 million teu containers. They are the mega container leasing company who has over a million teu in difference with the follower. They have listed on the NYSE since 2007. Their presence would be bigger after then. They are the noteworthy leasing company and we will keep an eye on them for their activity from now on.