NYK's varied maritime operations

NYK's varied maritime operations

NEW YORK
NYK’s vessels (see chart, page 24) are a diverse lot. Overall, 15 percent sail with Japanese officers, and 13 percent are operated under the Japanese flag.

In terms of container transport, NYK trunk lines serve the transpacific, Asia/Europe, and transatlantic markets. Since 1998, NYK has been a partner in the Grand Alliance, along with Hapag-Lloyd, Malaysia International Shipping Corp. Berhad, Orient Overseas Container Line, and P&O Nedlloyd Container Line.

Takao Kusakari declined to discuss NYK’s strategies within the Grand Alliance. "Speaking broadly, I would say that alliances are fairly successful in achieving their objective of reducing costs."

Does Kusakari think that alliances would be a long-term feature of ocean shipping, or a short-term expedient during a protracted period of consolidation?

"Mid-term," he said with a chuckle.

In 2000, NYK introduced a weekly transpacific service connecting northern China and South Korea with the U.S. West Coast. The previous year, it began a weekly transatlantic service linking Montreal with northern Europe.

In the Asia/Oceania trade, NYK operated services in 2000 between Australia and New Zealand and Northeast and Southeast Asia, including loops between China, Hong Kong, Taiwan and Australia, and between Japan, South Korea, and Australia. Intra-Asia, NYK links Indonesia, Thailand, Malaysia and Singapore.

NYK’s Good Hope Express Service extends from Japan and Asia to South Africa and the East Coast of South America. A semi-liner feeder service goes to Manaus, inland on the Amazon River, and to four ports in northeast Brazil.

The carrier has also begun service between Europe and South America, and expanded its runs between Asia and the west coasts of Central and South America, including a partnership with the Chilean Sud Americana de Vapores.

As for tramp and specialized-service vessels, the tramp market caved and then recovered during NYK’s fiscal year ending March 31, 2000, the latest for which figures are available. Ore, coal, grain, salt, and forest products were important commodities. The total volume of automobile exports from Japan remained stable, thanks to the U.S. and European markets, off-setting slack shipments of vehicles to the Mideast, South America and Asia.

NYK’s reefer vessels did most of their business in 2000 in cross-trade between countries other than Japan. The carrier’s 30 VLCCs (eight with double hulls) have profited from a recent turnaround in the tanker market (see related story, page 64). NYK is the leading transporter of crude oil to Japan, accounting for nearly one-third of all imported oil.

Much of NYK’s liquefied natural gas business comes from supplying LNG to electric power and gas companies in Japan.

The carrier operates three cruise liners, the Crystal Harmony (1990), the Crystal Symphony (1995), and the Asuka. A third Crystal liner has been ordered; a competition will be held among travel agents and customers to select a name for it.

"NYK has always been a major player in two of the three main east-west trades," the transpacific and Asia/Europe," Kusakari said. "We have also recently been able to strengthen our transatlantic service. While that development is something we will continue to work on in the immediate future, some of our important customers have asked us, as their global partners, to fill the missing links insofar as the coverage of trade lanes are concerned."

"In that respect, we are considering participation in the north/south trades," Kusakari said.

"As you know, we’ve started our Europe/South America service with reasonable success. In addition, we are looking at the possibility of beginning a North America/South America service.

"This may initially happen in the form of a slot charter arrangement with the lines already serving that trade. Depending on market development, we may also consider deploying our own tonnage," he said.

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