Container Market Report March 2020

    New coronavirus infection does not stop both within and outside a country. It spread out in the whole world in 3 months after a patient was reported in Wuhan, China in December 2019. The number of the total infected people of the whole world surpassed 100,000 as of March 7th. The death toll is 3,559. The number of the Japanese infected people as of 8th is 1,157 (including 696 Cruise ship). Apart from China of the outbreak source, the number of infected people increases rapidly with 5,000~7, 000 in Korea, Iran, Italy. A one-third of the inbound to come to Japan is Chinese, about 10 million. And the number of the Chinese overseas tourists amounts to about 150 million a year. I fully agree to the speed of these infection expanding in the world when I imagine how many Chinese people travel around the world.

    According to U.N. World Tourism Organization (UNWTO) the International Tourist number of visitors (longer than one night trip) of 2018 exceeded 1.4 billion. International Air Transport Association (IATA) announced on March 5 that the new coronavirus infection will decrease income prospect. They consider it to be $29.3 billion decrease in income and it is as the same level as SARS of 2003 but the worst would be $113 billion decrease in income. On the other hand, about the movement of the thing, it is cut the supply chain apart. Damage such as factory operation restrictions, the closure is serious. Association of U.S. harbor of America predicts that U.S. container traffic of the first-quarter comes to decrease by 20% this year. There are more like the global stock prices drop, cancellation, postponement of the professional sports, entertainment event, cancellation, postponement of the commemorative ceremony, reserve of eating out and so on. The influence to give the world economy activity is significant. A crude oil sudden drop by the cooling of the also global economy. It is boundless if I raise it. In addition, its loss is immeasurable.

    According to the employment statistics of February US Department of Labor announced March 6 the number of the employees of the non-agriculture section increased 273,000 compared with the month before. Unemployment rate is 3.5%, which improved by 0.1% from the previous month. It still maintains the low level for the first time in 50 years. The overall mean hourly wages increased by 3.0% from a year earlier and maintained 3% stand for 19 consecutive months. However, there will be concern about influence of the new coronavirus infection spread in the United States coming out in future. FRB urgently performed reduction in interest rates by 0.5% on March 3. It is considered that they would decide an additional reduction in interest rates for economy floatage by the end of March.

    Each shipping company let 105 ship callings suspend between Asian and North America, Europe, Mediterranean Sea in February. The suspension has a fall of about $1 billion in income. On the other hand, in anticipation of factory resumption in China from March they have been expediting empty container back to China, which are idling in Europe, North America. As a result, a freight rate rises suddenly for space tightness from Europe.

    The new container price in China is $2050 per 20f. It is $200, 11% of rises in price from January. Total new containers in China factory is 898,448TEU. (Dry: 853,270TEU, Reefer: 45,178TEU).

    In the current situation globalization has been rapidly advancing comparing an age ago the best method to prevent the expansion of such an infectious disease is the method that China adopted. They blockaded the outbreak source and forbade the movement of the people. Then the method that the United States adopted is effective.
It is to have forbidden the acceptance of the people of traveling Chinese for the past 2 weeks without hesitation. I can say that China, the United States learned in SARS, MERS. However, it is because they are in the position to be able to show the leadership of the top leader with the two countries. In the case of Japan, new coronavirus measures seem to have an impression of falling behind. This would be a result to get as hard as possible in the present political system. I think that it is beyond control by the existing law about the forced measures for the consideration for the personnel exchange with the neighboring country and correspondence of international service cruise ship. For effective breakthrough on prevention of pandemic expansion of the international infectious virus World Health Organization (WHO) should set up emergency measures manual in the emergency based on the experience of SARS, MERS and to make the best of this new coronavirus infection but it should have been neutral and have compelling force and at the same time it has to be beforehand agreed worldwide and at an earlier time it is necessary to proceed a policy to avoid it coming into the country and to stop it spread abroad as soon as possible in cooperation with neighboring countries. If Japan was able to take such means, I think that this new coronavirus was able to check a domestic infection at the water’s edge at an earlier time. I think the country could prevent big profit and loss without minding immediate profit and loss. In addition, the method should be quick in the recovery in all.
    It is necessary to make every crisis control manual at a national level when we think about it. We are performing a fire-practice in the office building based on the Fire Services Act once a year now. With sense of crisis, it gives an example concretely consistently, and it is always necessary to think about measures when it takes place. Of course, the crisis control awareness is useful personally as well as a country and a company.