Container Market Report April 2016

             I flew to Shanghai from Haneda to participate in Intermodal Asia 2016 opened in Shanghai on Monday, March 21. I departed at 2:40 p.m. and arrived to local time 5:10 p.m. It is the flight of two and a half hours. It is Pudong Airport after a long absence. It seems that the airplane arriving in this time must amount to a considerable number of passengers. The passport control place was crowded with many people. How to get at time is different by a passport control official. It takes time that photography is also required for entry individually. It is only baggage including the durability in the plane for the business trip of 4 days and 3 nights this time. Because I lined up on the line where considerably took time by passport control, the baggage of the boarding service had already appeared. There is only one exit there. An official in charge was beginning to check the baggage at the exit so that there were already many line toward the exit from each belt conveyor of the baggage center of more than 10. I used to be able to just pick it up and go freely there. Is this a part of the counterterrorism? However, they canceled the baggage check of the exit in a hurry because too many people overflowed. As a result, a large quantity of people began to move like a dam flowed. I was convinced that this seemed to be China. Though my airplane arrived a bit early than schedule. Entry took time. Therefore, it was full of the feelings that I was sorry when I thought about the friend who came to pick me up at an airport.

              The venue of Intermodal Asia 2016 was full of people waiting impatiently before opening at 10:00 on Tuesday, March 22. A sponsor prepared a dragon dance team parading around the booths by ringing a gong bell for artificial enlivening of the venue. In general Intermodal Asia of this year was somewhat small-sized and a bit calm probably because it was reflected current world economy. The booth of Triton and TAL was next to each other even if they announced that they would merge last year. They did not seem to be able to cancel it for a long-term booth contract. It means how the issue of merger of the last year was suddenly concluded.

             How does Intermodal Asia of this year look like? What kind of the companies attend and what kind of elaborate plans do they present? Can I see the usual participants again? Will everybody do it well? Can I hear from them something new? I always take part in it with such a feeling. I met many people as such and got big gain this year as well. They were doing their best. I got a lot of energy and motivation from them. I always feel grateful to them.

               In order to dissolve overtonnage shipping lines have been trying to brake for a freight rate drop by withdrawing ships from a service route and mooring the ships including new ones. However, when it becomes in this way we don’t know why each shipping line build new mega container ships. The bigger ship only would contribute to not more than the pioneer profit, wouldn’t it? When the other shipping lines follow it, the pioneer profit cannot but reduce from a competition principle. It will be necessary to break an established concept by an innovative way of thinking.

              How about we should pay attention to a container itself again? We use the rear door of the current 20f, 40f and 40f HC to load and unload cargo now. However, could we replace them with the side open container? The shipper would be pleased to use them because of the work efficiency. It might be questionable from a problem of the safety to use the container with the rear door which is narrow and dark inside. The side open container could shorten the working hour and cut personnel expenses to great extent by using one forklift or two. It is very different from using a side door open container comparing with the container with rear door in work efficiency. How is time important for a shipper? The shortened time could give a shipper new competitiveness. The same thing will apply to a forwarder. It will increase their work efficiency and they could deal with large number of cargo. Therefore, they could save labor cost to great extent by labor saving. It must be a good news to the situation of shortage of the trailer drivers because easy to load and unload could make them handle more cargo. Side open container could give them an innovative solution. At all events it is certain that originality, creativity, innovative approach will give the solution to problem which will make us different. New container price seems to hit the bottom of the price. It changes in $1,400 per 20f. Total amount of the new containers in China factories decrease in 900,000 TEU.

              Japanese yen rose in price to $1.00=107 yen on April 10. It is 11% of rises in price from $1.00=120yen of the end of the year. The Nikkei Stock Average fell by the drop in price of export-related shares. The tone down of the rise in interest rates in the United States, the fall of the crude oil price prompted European and American professional speculators to Japanese yen. Does the yen go to $1.00=105yen? At all events the correspondence to the change of a sudden exchange rate would be difficult. I could not deny what would be troubled by an exchange fluctuation this year either.

              I  have started working at the new office of a 5 minute walk from JR Sakuragicho Station on Monday, April 11. It is train commuting after a long absence. It is only 2 stations, but is considerable congestion for Yokohama Station. It is certain that it would be a good exercise to me. The new office faces the southeast on the eighth floor and is quiet and the office space is more than double. A window part is covered with full-scale smoked glass and there is a feeling of bright and opening. Three elevators (including baggage use it is four). I would like to express my deep thanks for situation that we have begun working in a new office blessed with excellent labor circumstances. Turning over a new leaf we would like to work hard in order to give our customers better solution to the problem whenever and wherever they have.