NYK aims to pursue innovation to stay ahead of competitors

    Japan's NYK Group plans to focus this year on strengthening its logistics offering through the acquisition of Yusen Logistics Co, expanding its activities in the renewable energies field, and on embracing "digitalisation" across the entire group, especially by making use of the Internet of Things (IoT).

    The use of new technologies and digitalisation in practical operations will allow the group "to realise a wide range of ideas and further differentiate ourselves," NYK president Tadaaki Naito told staff recently at the Tokyo headquarters.

    He highlighted that last year's establishment of the joint venture company Ocean Network Express Pte Ltd (ONE) for liner business integration with two other Japanese carriers, and the acquisition of Yusen Logistics Co Ltd (YLK) will shape the group's future.

    He said that the "difficult work" of bringing ONE to life is continuing in preparation for its launch this April.

    With regards to its logistics business, through YLK, Mr Naito hopes that logistics will be on "the frontline of the entire NYK Group through the utilisation of our global network to achieve closer relationships with our customers."

    The automobile logistics business has continued to grow; and the president wants the group to work together with YLK to focus on terminals and overland transportation, and to utilise IT in these activities to increase the group's competitive strength.

    He said that air freight cargo volumes remain strong, and said the group is preparing a system for operations with the jumbo freighter segment, a strength of Nippon Cargo Airlines (NCA).

    Now that the dry bulk market is recovering, the plan is to advance structural reforms and deploy data and IT tools to increase the group's ability to respond to the developments in the market.

    As for the liquid division, the group plans to identify new business opportunities in the renewable energy field in addition to transporting energy-related materials and supporting electric power businesses.

    "LNG and the offshore business will be the mainstays of business with stable freight rates in the future," said Mr Naito. "The transport of oil and petroleum products is one area where the focus is expected to shift to Asia in the future," he said.

    As the promoter of "creative solutions," the president is urging the group's technical headquarters to expand this activity across the entire NYK Group. "Promotion of digitalisation and new technology such as autonomous sailing has the potential to advance the next generation of safe vessel operations," he said.

    Mr Naito concluded: "The business results for the group are showing signs of improvement. Of course, this is due in a large part to the improvement of the shipping markets, but it is also the result of the efforts made by all employees during the 'Beat the Crisis' internal activity carried out over the past two years."

Iranian oil tanker still burning after collision off China coast

    The Iranian oil tanker, run by Iran's top oil shipping operator National Iranian Tanker Co, Sanchi that collided with Hong Kong-flagged CP Crystal in the East China Sea was still on fire on Tuesday morning, the Chinese Ministry of Transport said in a statement, as dozens of rescue boats struggled to control the blaze for a third day.

    Poor conditions, with heavy winds, rain and high waves, continue to hamper efforts to tame the fire and search for the 31 remaining crew members on the tanker. The body of a crew member was found on Monday in the water near the tanker off China's coast near Shanghai, the ministry said. It had been handed over to the civil affairs bureau.

    Concerns have been expressed that that the tanker may explode and sink while a flotilla of 13search and rescue vessels comb a 900-square-nautical-mile area around the ship for the crew, Reuters reported.

    The Sanchi was carrying 136,000 tonnes of condensate, an ultra-light crude oil that becomes highly volatile when exposed to air and water, to South Korea.

    The size of the oil spill from the ship and the extent of the environmental harm were not known, but the disaster has the potential to be the worst since 1991 when 260,000 tonnes of oil leaked off the Angolan coast.

    The freight ship, which was carrying US grain, suffered limited damage and the 21 crew members, all Chinese nationals, were rescued.

Seaspan takes delivery of fifth and final 11,000 TEU SAVER boxship

    Hong Kong-based ship owner, Seaspan Corporation has taken delivery of its fifth and final 11,000 TEU newbuilding, the MSC Yashi B, that is to start a bareboat charter with Mediterranean Shipping Company (MSC) for a period of seventeen years.

    MSC is obligated to purchase the containership at the end of the charter period for a pre-determined amount, according to PRNewswire.

    The MSC Yashi B, which was constructed at Hanjin Subic shipyard in the Philippines, is Seaspan's first vessel delivery in 2018, expanding Seaspan's operating fleet to 90 vessels.

    The company's managed fleet consists of 110 containerships representing a total capacity of approximately 900,000 TEU, including 4 newbuilding containerships on order scheduled for delivery to Seaspan and third parties by the end of 2018.

(Source:HKSG-GROUP)