NYK president cautious over world economy

Tokyo: Speaking on the occasion of NYK's 122nd anniversary, president Koji Miyahara (pictured) said the group expects to increase both revenue and profit this fiscal year thanks to the "briskness seen in the bulk and energy market." But he warned that the subprime mortgage problem in the US had "unexpectedly exposed the risks and frailty of the globalization of the economy" and that NYK needed to monitor the situation carefully.

"The adverse effect of the subprime mortgage crisis in the United States has generated  concerns over, among other things, the deceleration of housing investment and  a slowdown in capital spending and personal consumption," he said. "By contrast, the economies of the so-called BRICs --Brazil, Russia, India, and China -- in general and China in particular continue to make remarkable strides, while those of European nations have also maintained steady growth. In Japan, meanwhile, steadfast economic growth is  expected  under  the new Cabinet. Thus, it may be said that the world economy as a whole is currently doing fairly well.

"Nonetheless ... I believe that that NYK Group,  as a global total logistics service provider, needs to continue to closely monitor the impact of financial market disruptions on the world economy. The prices of crude oil, coal, metals, foodstuffs, and other resources continue to soar, and because it appears unlikely that these prices -- especially that of crude oil -- will soon return to their previous levels, we will need to consider these price increases when we devise future management strategies."

The NYK Group operates approximately 740 major ocean vessels, as well as  fleets of planes, trains, and trucks. The company's shipping fleet includes  around 140 containerships, 270 bulk carriers, 50 wood-chip carriers, 110 car carriers, 25 reefer carriers, 70 tankers, 20 LNG carriers, and three cruise ships. NYK's revenue in fiscal 2006 was $18bn, and as a group, NYK employs about 48,000 people worldwide.  [02/10/07]