Guarded optimism
The ongoing pandemic has prompted no lockdown in Japan. The government has nevertheless passed many measures restricting social and business activities. It will be interesting to see what comes next.
According to the official figures the Japanese economy grew by 12.7% in the fourth quarter of 2020, after an even stronger rise of 22.9% in the third quarter. The preceding quarter had been heavily impacted by a dramatic fall, however. Junichi Makino, the chief economist with SMBC Nikko Securities, underlined the fact that “this was a result of the Covid-19 downturn.”
Japan, where there has been no effective lockdown during the pandemic, is now looking to the future relatively positively, he added. This is down to active inoculation campaigns by Japan’s main trading partners, including the USA and some Asian countries, Makino continued. The economic situation in Japan will nevertheless remain tense in the first quarter of 2021. He believes that normal conditions will return slowly from April onwards.
Other problems remain acute
Other national economic problems will have to remain on hold before they are resolved, including declining wages and a continuously declining ability to compete internationally. According to Makino the country needs social change.
The news from K Line, one of the country’s most important shipping lines, is particularly positive for our industry. The maritime operator is also one of the members in Ocean Network Express (ONE), which is headquartered in Singapore. Specifically, the information has it that the latest figures from K Line show that the losses incurred in the business segment have remained manageable.
Restraint concerning change
K Line’s management has said that it will “initially look after business in the short term and show restraint concerning changes (to the size of the fleet, for example).” Security and safety, environmental issues and quality, the line said, are at the forefront of the issues of the future.
