Decline in main engine orders due to an overreliance on Japan’s domestic coastal shipping industry and market contraction
First written in FY2021. 4 of 9 entries say "Worsened", first in FY2023. Latest entry: 2026-11-09.
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- 2026-11-09RestatedResults
「Shipyards, meanwhile, continue to face difficulty expanding construction capacity against a backdrop of labor shortages and other factors. As a result, many shipowners are moving to secure construction slots early based on the age of their vessels, and some shipyards are already fully booked for construction slots 5 to 6 years ahead.」
Reaffirms constraints on shipyard construction capacity caused by labor shortages and the tight availability of construction slots extending 5 to 6 years ahead. - FY2026Updated number of vessels in operationAnnual report
「In Japan’s domestic coastal shipping industry, the number of vessels in operation had previously remained around 5,200, but the latest figure has declined slightly to approximately 5,150.」
The stated number of vessels in operation has been updated from approximately 5,050 to approximately 5,150. Meanwhile, larger vessels, a shortage of seafarers and the gradual decline in the number of vessels continue. - 2026-05-15MitigatedResults presentation
「Promote market diversification to reduce the risk of dependence on engine manufacturing and the domestic coastal vessel market」
Explicitly identifies overseas market development and the commercialization of the CMR business as means of diversifying the market in response to dependence on the domestic coastal vessel market. - FY2026-H1WorsenedAnnual report
「However, shipyards are finding it difficult to increase annual construction volumes because of labor shortages. As many shipowners moved to reserve berths after taking the age of their own vessels into account, some shipyards now have berths fully booked through 5 or 6 years from now.」
The domestic coastal vessel market explicitly identifies the difficulty of increasing annual construction volumes because of labor shortages at shipyards, with some shipyards having berths fully booked 5 or 6 years ahead. Constraints on supply capacity and berth availability are becoming more concrete. - FY2025WorsenedAnnual report
「In Japan’s domestic coastal shipping industry, the number of vessels in operation had remained around 5,200 over the past several years but has recently declined to approximately 5,050. Average gross tonnage per vessel has increased by approximately 30% from 10 years ago, resulting in larger vessels and a decline in the number of conventional small vessels. In addition, the chronic shortage of coastal seafarers, caused by the aging of crew members and a decline in younger seafarers, has led to a continuing gradual decline in the total number of vessels. Meanwhile, there are approximately 30 shipyards capable of building domestic coastal vessels.」
The number of vessels in operation is now stated as approximately 5,050, and the number of shipyards capable of building domestic coastal vessels as approximately 30, further specifying the structural risks of market contraction and supply constraints. - FY2024WorsenedAnnual report
「In Japan’s domestic coastal shipping industry, the number of vessels in operation has remained around 5,200 over the past several years. However, average gross tonnage per vessel has increased by approximately 30% from 10 years ago, resulting in larger vessels and a decline in the number of conventional small vessels. In addition, the chronic shortage of coastal seafarers, caused by the aging of crew members and a decline in younger seafarers, has led to a continuing gradual decline in the total number of vessels. Meanwhile, there are approximately 32 shipyards capable of building domestic coastal vessels, and their combined capacity is reportedly insufficient to build 100 vessels annually.」
The number of vessels in operation is stated as around 5,200, while average vessel size is approximately 30% higher than 10 years ago and the number of shipyards is stated as approximately 32, indicating stronger structural risks from market contraction and supply constraints than previously. - FY2023WorsenedAnnual report
「In Japan’s domestic coastal shipping industry, the number of vessels in operation has remained around 5,100 over the past several years. However, average gross tonnage per vessel has increased by approximately 20% from 10 years ago, resulting in larger vessels and a decline in the number of conventional small vessels. In addition, the chronic shortage of coastal seafarers, caused by the aging of crew members and a decline in younger seafarers, has led to a continuing gradual decline in the total number of vessels. Meanwhile, there are approximately 35 shipyards capable of building domestic coastal vessels, and their combined capacity is reportedly insufficient to build 100 vessels annually.」
The stated number of vessels in operation has changed from around 5,200 to around 5,100, and the number of shipyards from 38 to approximately 35, while the structural risks of market contraction and supply constraints continue. - FY2022RestatedAnnual report
「In Japan’s domestic coastal shipping industry, the number of vessels in operation has remained around 5,200 over the past several years. However, average gross tonnage per vessel has increased by approximately 20% from 10 years ago, resulting in larger vessels and a decline in the number of conventional small vessels. In addition, the chronic shortage of coastal seafarers, caused by the aging of crew members and a decline in younger seafarers, has led to a continuing gradual decline in the total number of vessels.」
The company has reconfirmed the structural risks of market contraction caused by larger coastal vessels, a decline in the number of small vessels and a shortage of seafarers, together with approximately 5,200 vessels in operation. - FY2021First statedAnnual report
「In Japan’s domestic coastal shipping industry, the number of vessels in operation has remained around 5,200 over the past several years. However, average gross tonnage per vessel has increased by approximately 20% from 10 years ago, resulting in larger vessels and a decline in the number of conventional small vessels. In addition, the chronic shortage of coastal seafarers, caused by the aging of crew members and a decline in younger seafarers, has led to a continuing gradual decline in the total number of vessels. Meanwhile, there are only 38 shipyards capable of building domestic coastal vessels, and their combined capacity is reportedly insufficient to build 100 vessels annually. Five domestic manufacturers of marine four-stroke engines compete in this market, intensifying competition for orders.」
The company has newly organized the market structure surrounding its concentration in domestic coastal shipping as a risk of declining orders: approximately 5,200 vessels in operation, larger vessels, 38 shipyards with annual capacity below 100 vessels, and 5 engine manufacturers.