On Oct 24 (Thu), we attended the Reefer Seminar which OOCL and Thermo King jointly organized for customers. Under the typhoon approaching weather condition over 60 people from 35 companies joined the seminar and listened eagerly for over 2.5 hours. The Seminar successfully ended by pleasant chairing of OOCL Tokyo’s staff and supported by two top management from OOCL Hong Kong. Magnum Plus had a great sensation like receiving some questions by mail from one of attendants following day. OOCL’s strong eagerness about growth of Reefer market in Japan has impressed us through this Seminar. OOCL has over 40,000 units of Reefer fleet and they have been using the slim line unit of Mangum Plus specially designed for OOCL. The article of this Seminar were reported by two major trade papers issued on Oct 29 (Mon), which I knew later.
On Oct. 27(Sun) we left Haneda Airport by the midnight flight to Bangkok to join Asia 2013 Dealer Conference hosted by Thermo King in Pattaya in Thailand. I was so surprised to see Haneda Airport so crowded with many passengers even at midnight which looked like daytime flight. We arrived at Bangkok at six o’clock in the morning. The immigration office was jammed with hundreds of Europeans and Americans who arrived at the same time from all over the world. The number of tourists visited in Thailand in 2012 was 22 million of which 1/3 was a Caucasian. Many Russian families were seen in Pattaya.
The streets in Bangkok were congested with a large number of Japanese cars but people drove along a lane to follow the traffic rule which is quite different from China. There are many skyscrapers so the town remains no traces of the old days. Lot of high-quality Japanese restaurants caught my eye. This scene could not be imagined 30~40 years ago. I felt as if I were in Tokyo. Thai people always have a smile on the face and friendly. It is the same now as it was back then. Thus, it must be a good place to live for Japanese.
It is 20 years since I visited Pattaya last. It takes about 2 hour drive from Bangkok. Pattaya is a Beach resort where it is located east south, 165 km away from Bangkok. We visited 2 factories consist of the main components of Magnum Plus the last day of the conference which total 115 people attended. If Thermo King listens to what the attendants from the dealers say good and bad about Magnum Plus and try to improve the unit by reflecting their voices. The Dealer Conference would be more meaningful, I would like to say.
It is proof that Thailand has high technology. She has No. 95 in per-capita GDP with $5,390. The auto production volume in Thailand is 2.48 million in 2012 which is No.9 in the world. They have established a stable production base in Asia even after damaged by the flood in 2011. Their structure of import and export against Asia is 65% and 73% respectively. Japan is No.1 trade partner. I think both countries could help each other in not only industrial products but agriculture and fishing industry. She is abundant in rice, fruit, fresh flower and seafood so both countries could set up closer complementary relationship as a trade partner by exchanging products which a partner does not have or being good at. It is a specialty field of Magnum Plus which has the highest cooling capacity and the widest operation temp rang (+30°C to -40°C) to transfer them.
When annualized, USA’s 3rd quarter GDP gain represents 2.8% from the previous quarter. Contrary to expectation the number of non-agricultural employment increased 204,000 in comparison to last month. USA economy seems to be recovering smoothly. EU will apply the interest rate to the historical low of 0.25% from Nov. 13 to support the economy bottomed out.
In Japan Nikkei Newspaper reports that Toyota will increase gross sales of the fiscal year end of March 2014 to 25 trillion yen, 13% up from the preceding quarter, an operating profit up 67% to 2.2 trillion yen. 80% of listed companies will expect to increase the ordinary profit 28% up in the fiscal year end of March 2014. Growth policy of Abenomics would create the good circulation like salary increase brings sales up, which will go with more production. As a result it will increase a tax revenue and I wish that it will contribute to reduce Japan’s debt of 1,000 trillion yen to great extent.
Cargo movement from Asia to North America, to Europe and within Asia region would be more or less the same as the previous year but it has undoubtedly been improving in the 2nd half of the year. Shipping lines stopped some service routes and reduced the number of the operating ships in order to restore the freight rate. Raise in the freight rate effective on Nov. 1 seems to have been successful in Europe, Mediterranean and South America routes. On the other hand shipping lines have been endeavoring to decrease the number of the waiting ships by slow speed operation policy. However, it is fact that number of the waiting ships have been increasing. It is said that the number of the waiting ships would be 188 ships with 521,000teu at present. All shipping lines should be requested to make effort in restoring the freight rate. It is Maersk Line that has the key. We could not take our eyes away from mega-alliance, 3P (Maersk, MSC, CMA-CGM) starting in 2nd quarter of 2014.
The number of the new production stock in the factories in China would be around 500,000teu. The price would be $2,000~2,050 per 20f. Utilization of containers in leasing companies seem to be maintained at 90% level. Their profit has been coming down due to increasing storage cost by large amount of returned containers from shipping lines. Leasing companies usually share the same depots in major ports in the world. Thus, depot capacity would be serious problem to leasing companies if shipping lines start returning heavily their surplus containers toward the slow demand season in winter. Especially for major ports in Asia like Shanghai, Hong Kong, Singapore, Busan, Bangkok it will be a matter of life and death to leasing companies. Therefore, it would be the turning point of the profit how soon they could sell old containers at good price in the market.
On the last day of Pattaya I went to Tiffany’s Show (New half Show) for the first time. The theater was already filled with guests who came by many tourist buses. I had been overwhelmed by full of beautiful ladies (?) on the stage. 2 hours show time impressed me to have instantly finished. They didn’t look dirty at all. They were healthy show time with lots of smiles. It was noticeable to see many guests of women. There were many foreign families who enjoyed the shows there. They didn’t actually sing songs but they just moved their mouth according to the recorded singer’s voice. However, their performance, the stage development and structure would reach to the level of the true art. I felt that my fatigue to be healed in the pleasant sensation of non-ordinary and gorgeous gala event. After coming back to Japan I read the article of the newspaper that Miss International Queen was held in Pattaya on Nov. 2 and Miss Haruna Ai, Japanese New half who was a winner of Miss International Queen in 2011 was invited as a judge. New half show in Thailand is quite famous as it is introduced in the guidebook. I believe that there must be a way to make your town revitalized as it depend on how you do it. I am positive that there must be a business chance anywhere. Tenderness of Thai peoples’ character could be conveyed by the show. Such show must be held in peaceful country. I come back to the reality and I will start to work hard with my refreshed guts.