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MOL, NYK slip away from box shipping quagmire, find solace in LNG logistics
JAPANESE shipping giants MOL and NYK are reducing their exposure to the unprofitable container and bulk sectors by moving towards greater involvement in liquefied natural gas (LNG) logistics, reports the UK's Transport Intelligence.
The Russian crisis over European gas imports from has focused attention on the growth of the LNG logistics sector, but action hasn't been taking place more in Asia than in Europe, said Ti.
Japan, South Korea and China are becoming big consumers, presenting opportunities for logistics providers NYK and MOL, both of which have placed LNG at the centre of their recently announced corporate plans.
According to the UK's Transport Intelligence this also reducing their exposure to container shipping where they have underperformed, while they enter a field of promising growth driven by strong regulatory tides.
LNG offers what the CEO of Mitsui OSK Line (MOL) described as a "one in a million business opportunity".
NYK's containership and bulk carrier fleet will shrink in the next five years if all goes according to plan as the company focuses on an its "asset light" approach. But its LNG tankers will grow to more than 100 ships, a 33 per cent jump.
This coupled with heavy investment in LNG logistics, from exploration drilling support to delivery terminals, indicates where NYK feels where growth lies.
Central to MOL's new "Steer for 2020" plan is the expansion of its LNG carrier fleet from nine per cent of the whole 26 per cent over six years time. Meanwhile, its bulk shipping will fall from 43 per cent to 37 per cent, while container shipping will fall to 12 per cent.
"It appears that over the long-term, MOL is looking to re-focus its business on a mix of car carriers and LNG carriers," said Ti.
The Russian crisis over European gas imports from has focused attention on the growth of the LNG logistics sector, but action hasn't been taking place more in Asia than in Europe, said Ti.
Japan, South Korea and China are becoming big consumers, presenting opportunities for logistics providers NYK and MOL, both of which have placed LNG at the centre of their recently announced corporate plans.
According to the UK's Transport Intelligence this also reducing their exposure to container shipping where they have underperformed, while they enter a field of promising growth driven by strong regulatory tides.
LNG offers what the CEO of Mitsui OSK Line (MOL) described as a "one in a million business opportunity".
NYK's containership and bulk carrier fleet will shrink in the next five years if all goes according to plan as the company focuses on an its "asset light" approach. But its LNG tankers will grow to more than 100 ships, a 33 per cent jump.
This coupled with heavy investment in LNG logistics, from exploration drilling support to delivery terminals, indicates where NYK feels where growth lies.
Central to MOL's new "Steer for 2020" plan is the expansion of its LNG carrier fleet from nine per cent of the whole 26 per cent over six years time. Meanwhile, its bulk shipping will fall from 43 per cent to 37 per cent, while container shipping will fall to 12 per cent.
"It appears that over the long-term, MOL is looking to re-focus its business on a mix of car carriers and LNG carriers," said Ti.
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