At the end of July I decided to fly to Hong Kong on the day and actually went to Hong Kong the following day and saw the customer on the day after the following day. It was the first time for me to fly overseas such short period of time. I believe that flying to Hong Kong the next day is inevitable if necessary. The face to face discussion is required once in a while because it is not much chance available in long distance. It made me Hong Kong close to me like visiting from Yokohama to Tokyo. I feel the world is getting small.
Consequently I have known that Kowloon is large in the small Hong Kong. I stayed in Kowloon 4~5 times in the past. I thought it was convenient as long as I stay in Kowloon, much more not expensive in the hotel charge. Therefore, I booked the hotel in Kowloon by internet. I learned to use the Airport Express from the Airport. However, it took me 80 RMB by taxi to the hotel so that I realized it was located far away. It is in distance from the nearest subway station. The hotel man recommended to use 25M of the mini-bus service from the hotel. It only costs me 5 RMB but it take 25~30 minutes to the subway station because of going around the various places. The mini-bus passed through the bus stop without stopping if all seats are taken. Most of people use the kind of prepaid card. The ticket is not sold in the bus. I was flatly refused in Cantonese when I asked the driver to change 20 RMB bill. I could not find the exchange place so I had to take a taxi. On the other hand I found the subway system in Hong Kong is very convenient because the opposite side of the arriving platform is the transit train of going up if you go up.
I found later that the hotel I stayed was near the old airport of “Kai Tak Airport” located in the east side of Kowloon. It was across the street of Kowloon Walled City, old slum town where it is now changed to the beautiful park. This area used to be very famous for various kind of Chinese food. It was full of people at night. I thoroughly enjoyed the local Chinese food with my old friend. There are over 7 million people in Hong Kong. Most people live in the high-rise buildings. They eat out 3 meals like breakfast, lunch and supper. Especially for breakfast and supper they have a favorite restaurant. I fully understand how they are particular about the food. Therefore, it is an inviolable rule in Hong Kong and China that we should go to the restaurants where it is crowed with many people. There are communication between the restaurant owner and the customers. They could enjoy conversation by themselves and eat the fresh and seasonal foods offered by the restaurant owner every day. It is quite good in health. It was so surprised to see the various foods available. I am confident that Chinese food is basically guaranteed food safety. I find vital energy in People of Hong Kong who enjoy eating together with family, friends every day. I think there is something Japanese lost long time ago.
Shipping Guide, Japanese leading trade paper refers that Container Trades Statistics (CTS) in English published June volume of export container in the world to be 11,581,500 teu, + 7.3% compared to the same month of the previous year, which is plus for 6 successive months.
Asia
Export volume 6,495,800 teu, + 10.13% from the same month of the previous year
Import volume 4,229,699 teu, + 10.56% – ditto –
N. America
Export volume 1,195,300 teu, + 4.31% – ditto –
Import volume 1,947,000 teu, + 3.81% – ditto ?
Europe
Export volume 1,959,600 teu, + 0.04% – ditto –
Import volume 2,460,400 teu, + 6.92% – ditto ?
According to Chinese government July trade statistics of China is + 14.5% from the same month of the previous year. Export from China to the U.S. is + 6.3%, to Europe is +10.6, to Japan is +3.9%, to Southeast Asia is +8.1% at the same month year earlier respectively. Thus, these increases would expect strong demand toward the summer.
Meantime, Maersk gave up P3 Network idea but they will start the consortium of 2M from Jan, 2015 with MSC which will get over 30% of market share. It is Maersk that will operate 20×18,000 teu in the future. Mega-ships put in Europe trade will bring the cascade phenomenon in other trades to replace small ships with large ones. However, the port facility could not catch up with the speed of enlargement of ships so that it has caused the delay of ships at the main ports in the world. Shipping lines have been maintaining the slow speed ship operation due to cut of the ship operation cost. Therefore, ship congestion in the port would require more ships in order to keep the operating schedule of the ships. As a result, the number of the waiting ships has been reduced to the lowest level since Aug, 2011. The freight rates bound for US West Coast and East Coast have been increasing because of ILWU issue still under negotiation. The freight rates seem to be in uptrend toward the summer due to tightness in the ship space to some extent.
Under the current market situation container demand may occur in coming Sep and Oct this year. New container stock in Chinese makers is 500,000 teu and new container price of $2,100 per 20f seems to be maintained. Leasing companies try to secure the production space of the factories till Sep where demand is the peak. Shipping lines try to manage container shortage by leasing containers from leasing companies, which is the usual pattern between shipping lines and leasing companies. However, this year seems to be rather difficult for shipping lines to secure the number of new containers in China close to the summer demand season because many shipping lines have already concluded long terms with leasing companies as earlier possible. Thus, both shipping lines who could secure containers earlier possible and leasing companies who could secure the production line would be the winner this year.
In the middle of July the news that Bohai Leasing Co., Ltd. Parent company of Seaco SRL purchased Cronos was announced. One of the old leasing companies will be disappeared in the market. Seaco will be No. 1 leasing company in the world with 3.42 million ceu (Cost Equivalent Unit) after adding Cronos exceeding Textainer. A few leasing companies will tend to monopolize the market. Extremely speaking, the leasing companies will be classified into 2 categories, big or small. It is effective to make the best of the small leasing companies.
UES that we act as the agent in Japan is No. 10 in the fleet size of 300,000 ceu which is 1/10 of Seaco. Probably shipping lines may think the larger leasing company is better than the small leasing company. However, the big leasing company would tend to be inflexible in the leasing terms because leasing volume is large. On the contrary small leasing companies try to be flexible to make themselves different from them so that small leasing companies will do better to shipping lines. Thus, I would like to recommend shipping lines not to hesitate to do business with small leasing companies as many as possible.
Thermo King we also act their agent in Japan is only one unit maker that could maintain – 40 degrees C. It is Magnum Plus. Other 3 major unit makers only offer ? 30 degrees C. The difference of -10 degrees C between – 40 degrees C and – 30 degrees C should be tremendously big. Magnum Plus could carry Tuna at the temperature of – 40 degrees C. Frozen cargo require colder better. Magnum Plus has the widest operating temperature range from + 30 degrees C to – 40 degrees C. Therefore, Magnum Plus will guarantee shipping lines to accept the wider range of reefer cargo. It will make shippers feel relieve about their quality of cargo at the destination. Shipping lines could not refuse using Magnum Plus if the purchase price is the same and operation cost would be less than the ordinary unit makers. So I would like to draw shipping lines’ attention to Magnum Plus. Thermo King is the unique reefer unit maker that has been seeking for frozen cargo in the coldest status. Frozen cargo of – 50 degrees C is better controlled at the temperature of – 60 degree C. Frozen cargo reach to – 62 degree C where storage life is guaranteed forever. Thermo King can also offer extremely deep frozen capacity unit called “ Super Freezer” which could maintain frozen cargo at the temperature of – 60 degrees C. It could be used for the cold storage warehouse because reefer container is movable and easy to use at any places.
We, EF International Ltd are nominated as the agents of several leading companies in Japan. We have been aiming at providing our customers with after-sales service so that customers could safely purchase and reliably use them. We are not the company who don’t want to take responsibility after sale. Therefore we are selling our products to customers with confidence supported by competent persons of large experience and excellent engineers. We would like to aspire to make customers a big success.