Container market Report December 2012

It was around 3:30 pm on Nov. 25 (Sun) when I arrived at Schiphol Airport in Amsterdam. It was just past 4 pm when I could come up to the taxi stand. It was about half an hour. I was surprised at such short hour of entry formalities. It was so impressive to hear that an immigration inspector said to me “ Arigato!” in Japanese with a smiling face after I showed my passport and replied a few formal questions to him. After picking up my luggage at the luggage claim center I just went out to the tax-free exist where there was nobody to check my luggage. In Japan we need declaration of no taxable articles to a customs officer even after passport check. In Holland they don’t seem to care about passenger’s luggage after an immigration inspection. I only have a few experiences to visit EU countries but there are nobody to check the ticket before getting in and out the trams and subways but there are only automated ticket vendors. People freely get in and off with a ticket. I used to feel at a loss how to buy a ticket because I could not ask for any question to a vending machine. Their system has been based on the view that humans are born good or comparing with the cost of machines and personal costs it is much cheaper to believe people. However, I hear that the penalty is quite high to the offender.

It was pleasant to fly from Narita and Schiphol by KLM for 11.5 hours. It was because I used Economy Comfort seat to and from Amsterdam by paying a bit extra money which gave me extra space. In-flight service would be close to Business class. It would be like a paradise especially for people who like drink because they served alcohol besides beer, wine before and after meal. The cabin attendants looked the experienced men and women. It was quite impressive to see their professional passenger treatment. Our attendant was a bald head man who changed to a bartender at the meal time and neatly handled the order from the passengers. When I ordered him for a cup of English tea he asked me “How about brandy?” I was happy to hear it. I usually use JAL, ANA because of mileage and comfort. To use the other world airlines would give me more chances of the new findings.

It was to attend COA meeting and Intermodal show that I came to Amsterdam. This is the 2nd time for me to attend Intermodal show. Textainer, No. 1 largest leasing company became a full member of COA this year and NYK joined in COA as NYK group, the first Japanese shipping line this year. Mr. Patrick Hick of Secretary-general was very happy about it. COA has been successful by increasing the number of members year after year. People meet many attendants in Intermodal show and they would become a friend each other and quality of exchanging information would be naturally improved better and better. Once a year, you will meet them. The person in charge may change but such exchanging opinions each other would create the new value to your knowledge. Exchange with different cultures and unlike races in the world would give Japanese a good hint for better solution and would urge Japanese society to make rapid progress to an ideal future. Otherwise, introversion might not release us from the Galapagos thinking.

Unexpected strikes for a week from Nov. 28 by ILWU in Los Angeles and Long beach port would have caused long stay of number of containerships and would bring confused inventory control of many shipping lines. On top of that, labor-management negotiations between ILA and USMX in US East Coast/Gulf will expire by Dec 29. Thus, it would be unpredictable what happen in US East Coast/Gulf ports according to negotiation between ILA and USMX.

We learnt that many major shipping lines could go into the black in the 3rd quarter after overcoming the red figure of the 1st half of the year. Japanese major 3 lines would get into the red except K Line. Next year would be also sever year to shipping lines because several special research institutes will expect volume of ship space at the end of the next year would increase 9~10% up comparing with the end of this year.

Chinese container makers have been continuously endeavoring to stop the price further down by production adjustment and temporary stop of production. The present container production price would be around $2,200 per 20. However it would rise in price gradually. It is said that major leasing companies would place an order for 40,000~60,000 teu respectively in the first quarter of the next year before a rise in price. On the other hand the factory inventory in Chinese makers would be over 600,000 teu. Container utilization in leasing companies would be kept high around 93~95%. Some major leasing companies would move surplus inventory to demand places by all possible ways to obtain the depot space especially in Shanghai, Busan, Thailand, Taiwan and Singapore.

In Japan the election of the House of Representatives will be carried out on Dec 16(Sun). The Democratic Party had broken the control of the Liberal Democratic Party (LDP) in July 2009. However, their control seems to come to an end after 3 years and 4 months because LDP seems to get a fair wind to recover their power in coming election. Democratic Party actually started with people’s great support of over 70% at the beginning but their political style would be the same as LDP and not big changes performed so that Democratic Party greatly disappointed people. Therefore, they could not avoid the situation of handing over the status of a ruling party to LDP.

Noble people who have a high ideal, great vision would become an ordinal person once they become a politician. Their political activities seem to be for re-elected in the next election. The politician should look Japan from the viewpoint of outside, in other words comparing with the foreign countries and should aim at the politics of making people happier. We should choose politicians who could do it. We sincerely request politicians to lay stress on honor instead of status and property.

Some economic experts predict that the world economy would improve in 2nd half of the next year. I don’t know how much it would be accurate but nobody know what would happen and what luck would be before us. Therefore our life would be fun. If an individual should have a strong hope it would become more powerful as a whole. It would be stronger undulation causing change of economy, politics and the world. Business would eventually require the forward-looking feelings. We should have a hope. We should positively tackle difficulties which would influence people around cheerful and happy. It would expand a powerful chain of business relation. EFI would like to make people happy in doing business with EFI. EFI will continuously challenge the new business to make people happier as the business partners in 2013.