Container Market Report May 2020

    The number of the infected people of the new coronavirus (COVID-19) in the world surpassed 4 million as of May 10. 1.3 million of America in the first on the list and 223,000 for Spain, 218,000 for Italy to come and the U.K. follows with 217,000. Russia reached 199,000, too. The world death tolls exceed 278,000 with 78,000 for the United States and U.K., Italy are beyond 30,000 respectively. The infection to new developing countries spreads from the beginning of April. There is concern about a rapid increase of Africa in particular. This infectious disease attacks the poor medical care system area. It must be true to spread in the future to the area and country where the infrastructure maintenance that water and sewage are not fully equipped with.

    As for the April employment statistics that the U.S. Department of Labor announced on 8th, the unemployment rate is 14.7%. It is the worst after the war. The unemployment increases rapidly to 23.08 million people from 7.14 million people. It surpassed 10.0% of the worst time of financial crises from 2008 through 09 and 10.8% after World War II. It recorded the worst for the first time in 80 years in history. It is said that it exceeds 20% when it includes a part-timer.
The employee number of non-agricultural sections became the record-high decrease, too and decreased by 20.5 million from the previous month. A growth rate of the January-March period is -4.8%. The second quarter growth rate decreases by 11.8% from the first quarter, and it is expected that the annual ratio conversion falls into -39.6%.
    The economic activities of some types of industry were restarted by May 8 in the United States in 31 states (including California) which occupied more than 60% of U.S. population. In Europe, Asia and many parts of the world, they have begun to move for the relaxation of economy and the social activity from May. It is a relaxation policy that expects economic recovery as soon as possible and avoids further economic damage on understanding the risk of the infection second wave. But it is the resumption of invisible exit strategy. It seems to symbolize how democratic politics cannot but lean toward politics of the Populism.

    Not only in the United States, every industry throughout the world loses the endurance of the employment. A difference is reflected on the degree to receive of the damage by industry. Restrictions on going out. The stagnation of the consumption activity. Distribution decrease. Poor auto sales. Collapse in oil prices. Primary industries, the secondary industry is forced to production adjustment by a fall of the consumption. The tertiary industry, such as restaurant, sightseeing, travel, hotel, airline business, has received a fatal damage because they do not have the movement of the people.
    There is no continuation of the company without securing of employment. At first, I sincerely request the government to fulfill the simplification of the interest-free financing procedure to the medium and small-sized business to keep the employment as Europe countries and U.S.A. did. “Special Supplementary Income Payment” of 100,000 yen to the person who lives in Japan has been carried out from May 1. We must fill up the application first after the notice of documents came to us from the government and the money will be transferred to our own account. It takes time too much. In the case of Japan, it is always too little too late and it is a problem. It would be revised in plenty way later. I want politicians to be more conscious of time as it is a state of emergency now.

    The shipping company is no exception, but the base cargo still moves as daily commodities, the industrial material, parts are incorporated in the supply chain basically. However, a volume of cargo by a bulk ship, a cargo boat, a tanker, a car carrier has been limited under the influence of a fall of the consumption.
    In addition, the securing of longshoreman on the port side receiving a ship, the waiting time of the sailor leaving a ship for the infectious disease prevention, the difficulty of the securing of backup appears. The containership less than 2 weeks after sailing from the infection country is forced to wait in the offing. The containerized cargo has been idling in the import port due to pick-up limit and a delivery delay for a city blockade. The shipping company is forwarding their containers purged from the surplus place to the demand place as ever.
    Because they reduced quantity of loading capacity of April by 9%, the World Container Index (WCI) of the main pivot 8 routes departing from and arriving at the United States, Europe, Asia goes up by 11% to 1,492.10 dollar/FEU from the year before. When 10% of container movement of this year decreases, the whole major shipping company suffer damage for 800 million dollars and in the case of a freight rate falls same as a Lehman shock, it is predicted that all containership industries lose profit of 23 billion dollars.

    It is thought that the number of the infected people and the death, while we see it every day, seem to happen in the place far apart from us and we seem to have been losing reality. Is there any consciousness to be myself free from it? On the other hand, the Japanese Government have been criticized to have fewer PCR (polymerase chain reaction) test amount exposed by the world now. They actually cannot grasp how many people are infected. I don’t think they can propose any measures without such figures. Because there is an example that a person has subjective symptoms but he could not be carried out PCR test and his condition turns worse and dies during standing by at home. The public health center should carry out PCR test. They should take an action if they think human resources is understaffed. If defense clothes, a medical mask is lack, they should secure a budget. The necessary thing is clear now. A worker in danger needs some utmost compensation to prevent medical collapse. I would like to ask the government to carry out PCR test to cover many people to give them relief as soon as possible. It should be used for either PCR test or for the environmental improvement that the healthcare worker commits if the government spent 46.6 billion yen on “a mask of Abe”.

    The new container price at the end of April is $2,050 per 20f. The total amount of the new containers in Chinese factory is 968,210TEU (Dry: 923,094TEU, Reefer; 45,116TEU). The new container price does not change last month. The number of Dry and Reefer increase a bit from the last month.

    We should do the infection prevention at a personal level like refraining from going out, washing hand, gargle by ourselves, taking enough sleep to protect ourselves now. We, EFI, have been carrying out new Telework since April 1, too. We have partly, experimentally begun with the distant place commuter in March, and we understand that it works without problem in our company. Application of IT. The buying and selling of container, the offer of our service does not have any problem even if we do not come to office and do not see customer face to face. The new coronavirus is going to change the style of our daily life. We may not need the office in the future. There is no big head office where all the member gathering together.
We can save an office expense, can’t we? May more productivity rise if we return it to an employee? It is necessary for the employee to think about how to get a result of the work and how to make a self-appeal that match for the Telework era. In addition, it is demanded that the company evaluates it appropriately. Of course, the work of the company is not possible only by one staff. Cooperation of all staff is necessary. The company should be able to evaluate them fairly.
    A vaccine working for new coronavirus is developed as soon as possible and we cannot but wish our usual economic activities to come back as before. The new coronavirus must continue affecting the world industry in future. I think it changes the quality of the work. In addition, I think we must change ourselves.
Is it that the infectious disease of viruses such as SARS, MERS including this new coronavirus is a warning for the human arrogance?

    I regret to say that I’ve gained 5kg during consecutive holidays in May with 3 meals a day and with a nap and staying at home. This is the problem that should be solved by oneself. It is my challenge to reduce the weight when the virus issue will come to an end.