Container market Report October 2012

I arrived at Singapore International Airport for the first time in 12 years. I bought the cheap round-trip ticket of Cathay Pacific Airline via Hong Kong. Transit time at Hong Kong was one hour from Tokyo (as a result 2 hours due to one hour delay of the connecting flight) and two hours for return flight. The direct flight of nearly 8 hours would be quite tough. The flight time between Tokyo and Hong Kong, between Hong Kong and Singapore would be less than 4 hours respectively. Two hours of transit at Hong Kong would be better to stay in the perfect physical condition. However, the flight to Hong Kong was fully occupied. So the cabin was too cold with the air-conditioning at full blast I had to wear the blanket over my jacket. On the other hand the flight from Hong Kong to Singapore was not used the blanket due to 70% seats occupied. I just remembered that ex-Hong Kong staff used to enjoy the cold air out of the air-conditioner as “Oh! Fresh Air!

My friend who I have not seen for long time welcomed me with a smiling face at the lobby of the airport nearly at 8 pm. He offered me a delicious dinner at the seafood restaurant near the sea on the way to the hotel. There is a wilderness of modern buildings along the street but the old buildings have been kept as is after refurbished. The roads have been more beautifully maintained compared with 12 years ago and have been still extended. The constructions on the road and building have been energetically carried on somewhere. As a result the traffic jam must have been solved to great extent. I tried to take a subway to the next station but the walking is probably quicker than that.

The Singapore port is No.2 in the world in handing container and has been flourishing as the hub port of the world. She has APL (NOL) for No. 6 in the world and PIL for No. 19 in the number of operating vessels. Japanese shipping lines like NYK, K Line have shifted their headquarter function in the liner service. Garden City emphasized, the park called “the Gardens by the Bay” has been made by reclaimed in Marine South section of 360 hectors. The tall towers imaged like the huge trees have been connected the towers with the bridges called as the Skywalk, which have made visitors lots of fun. There is the Marina Bay Sands Hotels well-known for the pool in the sky. Her area is the same as Tokyo city. GDP is US$ 259.8 billion dollar which is the same as Saitama Pref. GDP per person is $49,270. The world competitiveness is No. 2 (Japan for No. 10). 17% of nation owns the financial asset over one million US dollar per head. She is a rich country. She approved Casino in 2005. She is No. 4 largest tourist country in the world. She started to invite F1 Grand Prix held at night in Sep. 2008. This year F1 Grand Prix had been prepared to be hold 3 days later after I left. How could the country without resources survive? She has been aiming at Tourist nation based on the hub of the International Airport and Financial Center. PSA of No. 2 container handling terminal in the world has been advancing to the world ports for their activity. She has been always in the spotlight and has been leading the world. Her dynamism is worthwhile for us to follow. She looked brighter than 12 years ago.

China has already started since Oct 8 after long holidays. It is said that 700 million people had been moved across country in China. The Department of Commerce of China announced that the sale of the retail and restaurant increased by 15% to RMB 800.6 billion (JPY 9. Trillion) compared with the same month of the previous year. Their national power would be the strong advantage which supports the dynamic individual consumption. The way of their glutton for natural resources of the world used to be teased but China leading the world economy has been suffered from the surplus plants and equipments, overstock of products. The major steel maker, Baosteel Co., Ltd has stopped the latest reduction steel furnaces. Everybody keeps watching that the other Chinese steel makers would follow them or not. The volume of their crude steel production was about 680 million tons in 2011 which shares the half of the world steel production. Their production capacity would be about 900 million tons. Japan production volume is about 100 million tons.

The number of the new container production would be nearly 350,000 teu. The price would be $2300 per 20f by the major leasing companies. Most of manufacturers would continuously stop production due to taking the wait-and-see attitude. Leasing companies have shifted their fund to Reefer Containers in favorable demand. However, the demand would not improve more than they expected so that they seem to have expedited to reduce their factory stock by some means to recover money. The strike between International Longshoremen’s Association (ILA) and U.S. Maritime Alliance (USMX) in US East and Gulf coast was agreed to be postponed for 90 days.

Changing the subject, I had a chance to listen the lecture of “The Sea is longing for the Forest. ~ to plant the tree in the people’s heart” by Mr. Shigeatsu Hatakeyama sponsored by Kanto parish of the Christ Church in Japan in Sep. He cultivates the oyster in Kesennuma in Miyagi Pref. He learned in his real experience that the land iron would give an important influence to the living creatures in the sea. He started the appeal of planting the broad-leaved trees with the catchphrase of “The Sea is longing for the Forest.” He is now the professor of the field science education research center society connection of the Kyoto University. He was awarded the prize of “Forest Heroes” by United Nation Forest Forum (UNFF) in 2011 which is given for the people who contributed to protect the forest in the steady efforts and creative activities. A few days later I ordered his 5 books by Amazon. I was pleased to see like 5 persons of Mr. Hatakeyama all together visiting my home when I received his 5 books at home 2 days later.

Water carries the mountain minerals (especially iron) to the sea. The iron ion helps the plant plankton to easily absorb the nutrients and the zooplanktons eat them. As a result of the food chain there would be abundant shoal of fishes seen. However, the abundant fishing ground would be easily destroyed by the water-storage dams which stop the nutrients to flow into the sea caused to cut the food chain. The iron should be returned into the sea. You will see how the iron effectively operates the living creatures when you put a piece of the iron with the clams in the water bowl to spit out the sand out of the clam body and the drooping dwarf pine tree comes to life if you prick the root with the iron nail. It would apply to the human being like we get anemic due to lack of iron.

How to dispose the old container is the serious headache among shipping lines and leasing companies in mid-1980s. The old container is a lump of iron. It was a useless and obstructive thing at the end of the role. There are 30 million teu containers in operation in the world at present. It would be 3 million teu containers to be put into the 2nd hand market if 10% of 30 million teu containers would be retired every year. The number of the retired containers would increase steadily every year. The iron can recycle. Is it possible to return the iron into the sea limiting to containers not physically recycled in order to recover the abundant fishing places? Of course, in the way of the plant plankton easily to absorb the nutrients! I wish I can change container into the magic box! The seaweed is the forest in the sea and it changes CO2 into O2 after photosynthesis. It would be possible that the seaweed grows around Japan could recover most of CO2 of Japan. it would protect the global warming. The Sanriku-oki off the coast of Fukushima Pref. Miyagi Pref. Iwate Pref. would be one of the world great fishing grounds. The reason is caused by the imponderable iron in the yellow sand from China and by the iron in the Okhotsk current from Amur flowing on the border between China and Russia rising in the highland in Mongolia
Mr. Hatakeyama said that most of the oysters offered in Paris in France and in US West Coast would be from the origin of Miyagi Oyster because the oyster in France was damaged by the virus and then Miyagi Oyster was exported in 1969. Miyagi Oyster in US West Coast would be cultivated after transferring the cultivation of Miyagi Oyster.

One of Mr. Hatakeyama’s books has been translated into English with the title of “The Sea is longing for the Forest.”. I wish the friends in overseas to read it.