Container Market Report April 2019

    The cherry blossoms of this year has still partly left gorgeousness even though the weather recorded the coldest temperature in the past in April.
On the other hand, it is quite splendid to see the scene of scattering the petal of the cherry blossoms as a storm of falling cherry blossoms. It looks like seeing human life there. The name of an era will be changed to the Reiwa and it will start from May 1. I live in the Showa and the Heisei so that it will make me feel many years to pass whether I like or not.
    I am the generation that does not know the war. The Showa era is to make me feel certain that Japan becomes rich and our future is bright and hopeful without doubt. Father worked as an eager beaver employee for a family to make them escape poor life out of postwar as soon as possible. I am a generation brought up to see a back of father. The living was not easy but the life was enjoyable and bright to me. There was carefree laughter there. I was able to realize the life that became rich every day. A juvenile mind can still remember the feeling that I was excited about at that time. Japan became No. 2nd largest of GDP in the world after USA.
    I got an opportunity to station in USA from 1974 (Showa 49) to 1977(Showa 52).
I moved the office from San Francisco, Chicago and finally commuted to the head office near Grand Central Station in New York for the last one year, where I longed for. With the bunch of newspaper under arm and a taken-out coffee in one hand I used to smartly go down the escalator in the Grand Central Station, which it was a daily work. On the other hand, does the Japanese company really have the power that can play an active part in the world? I obtained the opportunity that I could play an active part in a foreign capital container leasing company in 1983 (Showa 58) while I had such a question.
    The Showa era was over in 1989 (Showa 64) and it changed to the Heisei era. For 26 years before retiring from a foreign capital leasing company in 2009 (Heisei 21), it was tense daily life, peculiar to foreign capital company as I could not relax
    Therefore, I was able to learn their Management. On the other hand, Japanese liner shipping lines decreased to 3 from 6 companies. In last April it came to only one, Ocean Network Express. I was able to live a substantial business life by warm support of all Japanese shipping lines’ staff at the period of working for a foreign capital container leasing company. Thanks to their support! They have grown up No. 1 leasing company for a scale in the world now as I served for 26 years. I have the self-confidence that I took on a driving force of the growth.
    
    I started business in 2010 (Heisei 22). It is the 10th year this year. For 31 years of the Heisei, I have had many chance to go overseas. It has made me more conscious of Japan by looking at her out of the foreign countries. The reason I started business may be the result that I was strongly conscious of Japan and a Japanese. I want to make Japan stronger. I am surely convinced that the Japanese can contribute to anything in the world
    What kind of times will be the Reiwa? I really want it to be the time when many young people can draw the bright future. As for being engaged in the work with foreign countries for a long time, the world needs Japan and a Japanese. Japanese should have a lot of confidence toward ourselves and I strongly want most of youths to jump out in the world.
    
    One surprising news jumped into my eye. It is decision that Toyota leaves their HV (Hybrid) patent of the top of their profit open to public without compensation. I want to send applause to their wise decision. A world flow is going to move toward an electric car at a stretch. However, it is reality that most of electricity power still rely on the fossil fuel. Until the times when we can completely create clean electricity, it takes time for a while. I think that it is the best choice to make HV engine widely available in one process of creating better environment. On the other hand, Toyota can obtain data in large quantities. And they can involve in setting the world standard. We could see a result naturally if we watch a Japanese cell phone strategy. The Japanese cell phone manufacturer made Japan like Galapagos and lost a world market simply because they were going to monopolize a small market called Japan. Besides, it followed that they lost the market of the smartphone. It is 100 million vs. 7 billion people. The compensation is big. The Japanese production companies should take this in their heart well strategically.

    According to Drewry a freight rate from Asia to Europe and North America has been in a rising trend. Cargo volume will increase from China and Asia toward the summer time. It is the bright materials for shipping lines. The U.S. and China trade friction takes a short break, too. Cargo movement from China to USA has been active in shifting more from Asia to USA. The big confusion in Europe could be avoided for a while as UK is reprieved in the session with EU till the end of October. The flow of the thing is expected to turn drastically. The number of the waiting new containerships have been reduced by reflecting it. The shipping line has been pressed by dealing with the sulfur oxide (Sox) regulation by IMO from January 2020.
    The new production container price of China is $ 1,820 per 20f. It is a rise in price of $ 50 per 20f compared with the month before. Total factory new container stock in China is 811,000TEU (Dry: 774,600TEU, Reefer: 36,400TEU) as of the end of March.
The speculative ordering of the leasing company is prosperous sequentially. As a characteristic of the ordering of the container leasing company, Seacube, Seaco, , Beacon is specialized in Reefer. Conversely, Florens narrow down to Dry. Textainer and Triton secure both Dry and Reefer and quantity of some ordering.

    Three new employees joined our company in April. 2 of them are young man and woman at the age of 24 and 25 year old after university graduate with few society experience. I thank for that I was able to meet an excellent youth. I want to train them to get their faculties develop as much as possible. The average age of our company considerably will fall in. EFI becomes 21 competent staff in all. I look forward to the future.