JAPAN's Nippon Yusen (NYK), the nation's largest shipping line, is concerned that US tariffs could push up the cost of automobiles and daily goods, denting consumer demand and slowing cargo flow, Reuters reports.
'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,' said nyk president Takaya Soga.
A 25 per cent tariff on auto imports is expected to hit Japan's export-driven economy, said Mr Soga.
But he saw potential benefits from the trade war. As seen during the Covid scare, tariff-related delays could disrupt logistics, tighten ship demand and lift freight rates, he said.
And if China shifts to sourcing raw materials from outside the US., NYK could find business opportunities. NYK Line's bulk shipping operations are focused on dry bulk cargo, transporting iron ore, coal, and grain. It is also active in liquid bulk, shipping crude oil, LNG and chemicals.
The United States is also planning to charge fees for docking at US 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.
Of the roughly 800 vessels owned or operated by NYK, less than 10 per cent are China-built, according to the company.
'The US 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, Mr Soga expects Red Sea avoidance to continue. Disruption in the Red Sea due to attacks by Yemen's Houthi insurgent absorbed extra capacity last year, as many ships took a longer route around Southern Africa.
While 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) tankers, Mr Soga said.
Regarding the investment plans in vessels involved in offshore wind power projects, Mr Soga said the company's plans in Japan may be delayed due to slower-than-expected market development, but overseas investments will proceed sooner.
SeaNews Turkey
'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,' said nyk president Takaya Soga.
A 25 per cent tariff on auto imports is expected to hit Japan's export-driven economy, said Mr Soga.
But he saw potential benefits from the trade war. As seen during the Covid scare, tariff-related delays could disrupt logistics, tighten ship demand and lift freight rates, he said.
And if China shifts to sourcing raw materials from outside the US., NYK could find business opportunities. NYK Line's bulk shipping operations are focused on dry bulk cargo, transporting iron ore, coal, and grain. It is also active in liquid bulk, shipping crude oil, LNG and chemicals.
The United States is also planning to charge fees for docking at US 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.
Of the roughly 800 vessels owned or operated by NYK, less than 10 per cent are China-built, according to the company.
'The US 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, Mr Soga expects Red Sea avoidance to continue. Disruption in the Red Sea due to attacks by Yemen's Houthi insurgent absorbed extra capacity last year, as many ships took a longer route around Southern Africa.
While 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) tankers, Mr Soga said.
Regarding the investment plans in vessels involved in offshore wind power projects, Mr Soga said the company's plans in Japan may be delayed due to slower-than-expected market development, but overseas investments will proceed sooner.
SeaNews Turkey
