I attended the 12th Container Owners Association (COA) General Meeting from May 6(Mon) and 7(Tue) held in Shanghai. I would stay at the hotel at the corner of Korean town near the Hongqiao Airport. It is very convenient that there is a direct flight between Hongqiao and Haneda (Tokyo). I don’t need a luxury hotel because I am out all day long by visiting customers. They are 5 stars hotel to me because of reasonable hotel charge, good service and capable hotel employees. Most guests are Koreans so that breakfast menu is ready for Korean which is also acceptable to Japanese.
There is one thing I noticed. Many Korean businessmen like to eat the instant noodles in a plastic bowl for breakfast. It was in my junior high school age that the instant noodles got popular. It was over 40 years ago. I understand its convenience of the instant noodles but it is just for emergency rations to me. I would like to choose a homemade one if there are both the instant noodles in a bowl and homemade one available. People of 40~50 years old would grow up with the instant noodles. They may have a special attachment to it or eating it would make them feel at ease. I remember that there was the tough guy who used to bring a dozen of instant noodles in a bow with him when he go business trip to overseas. The generation of the instant noodles seems to commonly apply to people of 40~50 years old in Asia. It may be a proof that the instant noodles have developed so tasty?
Taxi fare in Shanghai is so cheap. It is about JPY 1,000 to take a taxi about 25 km. It is quite economical for you to stay at the hotel in the suburbs even if you take a taxi. However, you have to take enough time in consideration of delay by the traffic congestion. We left Hotel at 4:30 by taxi for COA reception Hotel in Pudong which would start at 6 pm. We luckily arrived at 5 pm there without any traffic congestion on the Nanpu Bridge across the Huangpu River, a tributary of the Yangtze River. It was one hour earlier.
The bird flu had been one of big topics in News media in Japan before I came to Shanghai. We knew on the way that the big exhibition was held in the Shanghai New International Expo Centre which is the largest hall in Asia to provide with 57,000 secure meter for the indoor exhibition hall and 20,000 secure meter for the outdoor exhibition site had been already crowded with many visitors near the COA reception Hotel. The Hotel where COA meeting had been holding many international meetings there as well and many people stayed there to attend it. Shanghai has such a charm of getting a large number of people coming. It would be a proof that China has significant influence to the world under any circumstances. It might be a tiny thing that how many people died of the bird flu comparing with population of 25 million people in Shanghai. The bird flu had not become a main subject of our chats but not many people didn’t order chicken dishes in the restaurant so that it is certain that Chinese people have taken care of it very much. I wish the bird flu issue to be solved as quickly as possible.
Over 200 people attended the 12th COA meeting this time. Its scale has been growing year after year. The status of COA has already been solid in container industry of the world. It would be quite meaningful that the parties concerned could meet and talk about the hot topics which container industries face. The meeting would not be successful without effort of COA secretariat. I would like to appreciate them highly in view of COA meeting to be prosperous every year.
Unemployment ratio in USA has been down 0.1% comparing with last month. The number of workers of nonfarm payroll employment increased 165,000 from a month ago. NY Dow went over $15,000. Tokyo stock price recovered JPY 14,000 level. Yen recorded $1.00=JPY 101 in Tokyo Stock Market for the first time in 4 years 7 months. It would be predicted that the listed companies of Japan Stock Market would increase 20% up of consolidated ordinary profit in March of fiscal year, 2014 on condition the current weak Yen would continue. We will have to make the best of weak Yen. Japan should aim at the national commitment to the tourism. We should make our country more attractive for foreigners to come to Japan. At the same time it is inevitable that Japan should invite more international conventions. Companies should return their profit to employees to some extent which will enhance household consumption and will encourage people. As a result Japan will activate the world economy to great extent. There are many things for Japanese government to support the private enterprises in order to make the name of “Abenomics” left in the history.
Japanese 3 Shipping Lines will predict black figures in March of 2014.
Business performance of Liner Business by 3 Japanese Lines
It is quite difficult for Liner shipping companies to make profit under the current situation. Their profit has been generated by the strenuous cost cut such as freight rate restoration and slow speed operation. However, one thing is sure that there is hardly one shipping company to exist in the world. It is important for them to have flexibility to swiftly cope with change of the industry environment. I sincerely request them to find what Japanese liner companies only can do in such business competition and make them different from others.
New container price would be downward a bit to $2,300 per 20f because not many makers could fill the production line after July onwards. New containers factory stock in China seems to have reached 700,000 teu. It would be a matter of time to touch the level of one million teu under the present situation. The depot stock in each leasing companies would be in uptrend in Asia. I hopefully expect quick economic recovery to Europe and more powerful development to USA toward the summer time of demand season.