Recovery in the coastal shipping market and expectations for increased newbuilding orders, driven by higher PKS volumes
First written in FY2023-Q1. 2 of 10 entries say "Restated". Latest entry: FY2026-H1.
The whole theme swung hardest in 2020: 6 of 15 companies on the "Worse" side.
0 other companies' latest entry also says "Other".
- FY2026-H1Continued weakness in coastal cargo-vessel construction and firm inquiries for chemical tankersAnnual report
「Orders for overseas projects have also recovered, particularly for tanker-related vessels, and inquiries have remained at a high and stable level.」
The recovery in overseas projects, primarily tanker-related, and the sustained high level of inquiries are evident. Within the coastal shipping market, the newbuilding environment for cargo vessels and inquiries for chemical tankers continue to develop as themes related to the existing coastal shipping market. - FY2025Excess coastal cargo-vessel capacity and continued chemical-tanker inquiriesAnnual report
「The shipyards building coastal vessels targeted by our 2-stroke engines have only limited berth capacity remaining for 2028. For cargo vessels, freight rates do not justify current vessel prices, and there is no sign of positive momentum for newbuilding. Meanwhile, inquiries for coastal chemical tankers continue.」
While no positive momentum for cargo-vessel newbuilding is evident because freight rates do not support vessel prices, inquiries for coastal chemical tankers continue. - FY2025-H1Excess coastal cargo-vessel capacity coexists with firm chemical-tanker inquiriesAnnual report
「The coastal cargo-vessel market targeted by our 2-stroke engines is experiencing excess capacity because existing domestic cargo vessels in China are being converted for coastal service, substantially reducing momentum for newbuilding. Meanwhile, inquiries for coastal chemical tankers remain firm.」
The coastal cargo-vessel market has developed excess capacity as a result of vessel-type conversions in China, substantially reducing momentum for newbuilding, while inquiries for coastal chemical tankers remain firm. - FY2024-Q3Construction demand continues despite a slower ordering paceAnnual report
「In the coastal shipping market targeted by our 2-stroke engines, freight rates currently do not support prevailing vessel prices, and the limited order backlog despite the large number of older vessels suggests that ordering has slowed somewhat. However, construction demand is expected to continue for some time.」
In the coastal shipping market, the company points to an imbalance between vessel prices and freight rates, a limited order backlog, and a slower ordering pace, while stating that construction demand supported by the aging fleet will continue for the time being. - FY2024-Q2RestatedAnnual report
「In the coastal shipping market targeted by our 2-stroke engines, freight rates currently do not support prevailing vessel prices. However, replacement-building demand is expected to continue for some time, given the large number of older vessels and the limited order backlog.」
The company has reaffirmed its view that demand for coastal-vessel construction will continue for the time being, against a backdrop of the imbalance between vessel prices and freight rates, the large number of older vessels, and the limited order backlog. - FY2024-Q1Replacement-building demand continues despite an imbalance between vessel prices and freight ratesAnnual report
「In the coastal shipping market targeted by our 2-stroke engines, freight rates currently do not support prevailing vessel prices. However, replacement-building demand is expected to continue for the time being, given the large number of older vessels, the limited order backlog, and the benefit of the weaker yen.」
The company notes the imbalance between current vessel prices and freight rates, the large number of older vessels, and the limited order backlog, while stating that replacement-building demand is expected to continue for the time being, also supported by the weaker yen. - FY2023RestatedAnnual report
「In the coastal shipping market targeted by our 2-stroke engines, much of the PKS cargo for biomass power generation, which had been substantial, is now flowing to Europe, where prices are higher. This has reduced backhaul cargo volumes, and freight rates currently do not support prevailing vessel prices. However, replacement-building demand is expected to continue for some time because the fleet contains many older vessels and vessel-age restrictions apply to steel transportation from Japan.」
Although the outflow of PKS cargo to Europe is a negative factor for transportation volumes and profitability in the coastal shipping market, the company expects replacement-building demand to continue because of the aging fleet. - FY2023-Q3Coastal shipping market has peaked, while replacement-building demand continuesAnnual report
「The coastal shipping market targeted by our 2-stroke engines has also peaked, but basic logistics volumes remain higher than before the COVID-19 pandemic, and the fleet includes many older vessels. We therefore expect replacement-building demand to continue for some time.」
While the company's view has shifted from an increase in coastal-vessel orders to recognition that the market has peaked, it expects replacement-building demand to continue for the time being, supported by logistics volumes and the large number of older vessels. - FY2023-Q2AdvancedAnnual report
「Meanwhile, the coastal shipping market targeted by our 2-stroke engines has recovered substantially, mainly due to increased cargo volumes of PKS for biomass power generation. This has led to an increase in the number of coastal vessels ordered, reflecting replacement demand based on the age of the existing fleet, although how long this trend will continue depends on future market conditions.」
The company states that the recovery in the coastal shipping market, supported by higher PKS volumes, has led to an increase in the number of coastal vessels ordered. It adds that the sustainability of this trend depends on future market conditions. - FY2023-Q1First statedAnnual report
「Meanwhile, the coastal shipping market, which is the target market for our 2-stroke engines, has recovered substantially, mainly due to increased cargo volumes of PKS for biomass power generation. Few coastal vessels have been built in recent years, but the market recovery is encouraging newbuilding activity, and we look forward to an expansion in orders going forward.」
The coastal shipping market targeted by the company's 2-stroke engines has recovered due to higher PKS volumes, and the company points to growing momentum for coastal-vessel newbuildings and expectations for increased orders going forward.