Latest news with #Soga
Mint
29-05-2025
- Business
- Mint
Top Japan Shipper Sees Orders Recovering as Trade Tensions Ease
Japanese shipping giant, Nippon Yusen KK, is confident US tariffs won't hurt its business as much as initially expected, with bookings already recovering and set to stay strong over the next three months. The biggest shipper by market capitalization — which operates container and cruise lines, specialized carriers, and air freight — saw a robust recovery in container shipping orders following an easing in tensions between the US and some of its trading partners this month, said Chief Executive Officer Takaya Soga. That's after booking volumes had slumped by a third as US President Donald Trump announced sweeping tariffs in April. 'Even if things continue as they are now, there will probably not be another decline in bookings from tariffs this year,' he told Bloomberg News on Wednesday. Specifically with regard to shipping autos, which have faced a 25% US tariff since April 3, Soga said bookings 'have not dropped at all'. Separately, rival Mitsui OSK Lines Ltd. also said an expected decline in shipping volume had not materialized as of April and May. 'In a sense, it is a happy miscalculation,' Chief Executive Officer Takeshi Hashimoto told Bloomberg News earlier this week. A good order book would help Nippon Yusen focus on quickly expanding its shipping business through mergers and acquisitions, Soga said. Nippon Yusen became the world's largest operator of liquefied petroleum gas carriers last month after it acquired the non-crude oil tanker shipping business from ENEOS Ocean, a subsidiary of ENEOS Holdings Inc., for 76 billion yen . The company took over over 47 vessels, including LPG carriers and chemical tankers. Soga said acquiring part of ENEOS Ocean 'was a very good deal, and I'm currently looking into other similar opportunities.' He declined to name any potential targets. When asked about the US' planned port-entry fee targeting Chinese vessels, Soga said he sees the policy having limited impact on Nippon Yusen as only 8% of its fleet is China-built. He added his company has no plans to exclude Chinese shipyards from future shipbuilding orders. Earlier this week, Mitsui OSK said it is hard to buy Chinese vessels for the time being as the US ramps up scrutiny. This article was generated from an automated news agency feed without modifications to text.
Reuters
01-04-2025
- Business
- Reuters
Top Japanese shipping line fears US tariffs will slow cargo flows, president says
TOKYO, April 1 (Reuters) - Nippon Yusen (NYK) (9101.T), opens new tab, Japan's largest shipping line, is concerned that U.S. President Donald Trump's tariffs could push up the cost of automobiles and daily goods, denting consumer demand and slowing cargo flows, its president said. "The tariffs are not directly borne by consumers, but the burden ultimately falls on them, which in turn reduces the actual flow of goods. That's our biggest concern," President Takaya Soga told Reuters in an interview on Monday. Trump last week unveiled plans to impose a 25% tariff on automobile imports, a move expected to hit Japan's export-driven economy. He has also vowed to announce reciprocal tariffs targeting all trading partners on Wednesday. "Tariffs could have a considerable impact on the economy," Soga said, adding that the extent of the impact on shipping and logistics companies will depend on actual cargo movements. However, Soga sees potential benefits from the trade war. As seen during the COVID-19 pandemic, even if cargo volumes decline, tariff-related procedural delays could disrupt logistics, tighten ship demand and lift freight rates, he said. And if China shifts to sourcing raw materials from outside the U.S., NYK could find business opportunities. A rush for general consumer goods drove up cargo movement in December until just before the Chinese New Year in anticipation of U.S. tariffs, but there has been no major shift in material flows since they took effect, Soga said. The United States is also planning to charge fees for docking at U.S. ports on any ship that is part of a fleet that includes Chinese- built or Chinese-flagged vessels and will push allies to do similar or face retaliation. "The U.S. government will carefully examine the policy, including whether it will be implemented, so we cannot say now that we will stop ordering vessels from China," he said. With ongoing geopolitical risks in the Middle East, Soga expects Red Sea avoidance to continue for a while. Disruption in the Red Sea due to attacks by Yemen's Houthi militants absorbed extra capacity last year, as many ships took a longer route around Southern Africa. While container vessel congestion in the Panama Canal has largely been resolved, NYK is urging the Panama Canal Authority to reinstate Tier 1 priority for liquefied natural gas (LNG) tanker traffic, Soga said. Regarding the investment plans in vessels involved in offshore wind power projects, Soga said the company's plans in Japan may be delayed due to slower-than-expected market development, but overseas investments will proceed sooner.
Yahoo
01-04-2025
- Business
- Yahoo
Top Japanese shipping line fears US tariffs will slow cargo flows, president says
By Yuka Obayashi TOKYO (Reuters) - Nippon Yusen (NYK), Japan's largest shipping line, is concerned that U.S. President Donald Trump's tariffs could push up the cost of automobiles and daily goods, denting consumer demand and slowing cargo flows, its president said. "The tariffs are not directly borne by consumers, but the burden ultimately falls on them, which in turn reduces the actual flow of goods. That's our biggest concern," President Takaya Soga told Reuters in an interview on Monday. Trump last week unveiled plans to impose a 25% tariff on automobile imports, a move expected to hit Japan's export-driven economy. He has also vowed to announce reciprocal tariffs targeting all trading partners on Wednesday. "Tariffs could have a considerable impact on the economy," Soga said, adding that the extent of the impact on shipping and logistics companies will depend on actual cargo movements. However, Soga sees potential benefits from the trade war. As seen during the COVID-19 pandemic, even if cargo volumes decline, tariff-related procedural delays could disrupt logistics, tighten ship demand and lift freight rates, he said. And if China shifts to sourcing raw materials from outside the U.S., NYK could find business opportunities. A rush for general consumer goods drove up cargo movement in December until just before the Chinese New Year in anticipation of U.S. tariffs, but there has been no major shift in material flows since they took effect, Soga said. The United States is also planning to charge fees for docking at U.S. ports on any ship that is part of a fleet that includes Chinese- built or Chinese-flagged vessels and will push allies to do similar or face retaliation. "The U.S. government will carefully examine the policy, including whether it will be implemented, so we cannot say now that we will stop ordering vessels from China," he said. With ongoing geopolitical risks in the Middle East, Soga expects Red Sea avoidance to continue for a while. Disruption in the Red Sea due to attacks by Yemen's Houthi militants absorbed extra capacity last year, as many ships took a longer route around Southern Africa. While container vessel congestion in the Panama Canal has largely been resolved, NYK is urging the Panama Canal Authority to reinstate Tier 1 priority for liquefied natural gas (LNG) tanker traffic, Soga said. Regarding the investment plans in vessels involved in offshore wind power projects, Soga said the company's plans in Japan may be delayed due to slower-than-expected market development, but overseas investments will proceed sooner. Sign in to access your portfolio
Yahoo
24-03-2025
- Business
- Yahoo
Japan, Korea would struggle to fill US demand for non-China shipbuilding, NYK Line exec says
By Sudarshan Varadhan SINGAPORE (Reuters) - U.S. allies Japan and South Korea would struggle to quickly ramp up shipbuilding to meet U.S. demand for alternatives under President Donald Trump's plan to impose port fees on China-linked ships, a top Japanese shipping executive said on Monday. The Trump administration is drafting an executive order in a bid to revive domestic shipbuilding and weaken China's grip on the industry. Japanese shipbuilding is running near full capacity, with little scope for expansion until 2028, while shipbuilders in South Korea, as well as in the U.S., face financial challenges, said Takaya Soga, CEO of Nippon Yusen (NYK), Japan's largest shipping line. "The capacity of Japanese shipbuilding is almost full at the moment, until say 2028. So it is not so easy for them to increase the capacity," Soga told Reuters on the sidelines of the Singapore Maritime Week conference. Soga said expansion by South Korean shipbuilders was also not imminent, as they had "suffered from a very bad financial situation" for nearly two decades. U.S. shipbuilders need both investment and technology to boost capacity, Soga said. Trump's order would establish a Maritime Security Trust Fund as a funding source and create shipbuilding incentives through tax credits, grants and loans, according to a draft fact sheet. China, South Korea, and Japan account for 90% of global shipbuilding, according to the Center for Strategic and International Studies. Chinese shipbuilders have built their market share to more than 50% of merchant vessel cargo capacity, up from 5% in 1999, winning share from their Asian neighbours.
Reuters
24-03-2025
- Business
- Reuters
Japan, Korea would struggle to fill US demand for non-China shipbuilding, NYK Line exec says
SINGAPORE, March 24 (Reuters) - U.S. allies Japan and South Korea would struggle to quickly ramp up shipbuilding to meet U.S. demand for alternatives under President Donald Trump's plan to impose port fees on China-linked ships, a top Japanese shipping executive said on Monday. The Trump administration is drafting an executive order in a bid to revive domestic shipbuilding and weaken China's grip on the industry. Japanese shipbuilding is running near full capacity, with little scope for expansion until 2028, while shipbuilders in South Korea, as well as in the U.S., face financial challenges, said Takaya Soga, CEO of Nippon Yusen (NYK) (9101.T), opens new tab, Japan's largest shipping line. "The capacity of Japanese shipbuilding is almost full at the moment, until say 2028. So it is not so easy for them to increase the capacity," Soga told Reuters on the sidelines of the Singapore Maritime Week conference. Soga said expansion by South Korean shipbuilders was also not imminent, as they had "suffered from a very bad financial situation" for nearly two decades. U.S. shipbuilders need both investment and technology to boost capacity, Soga said. Trump's order would establish a Maritime Security Trust Fund as a funding source and create shipbuilding incentives through tax credits, grants and loans, according to a draft fact sheet. China, South Korea, and Japan account for 90, opens new tab % of global shipbuilding, according to the Center for Strategic and International Studies. Chinese shipbuilders have built their market share to more than 50% of merchant vessel cargo capacity, up from 5% in 1999, winning share from their Asian neighbours.
