Alexandru Arba
Research expert covering Japan
Maritime transportation in Japan - statistics & facts
For the island nation of Japan, the fourth-biggest economy of the world, maritime transportation is indispensable. On the one hand, international maritime transport is vital because more than 99 percent of Japan’s foreign trade is realized via sea. On the other hand, domestically operating ships are a feasible mode of transportation, moving over 87 million passengers and 350 million tons of goods across more than 400 inhabited islands. Furthermore, maritime transportation creates jobs for people; on sea and land, in Japan and elsewhere.
Japan, the biggest LNG importer, sees itself in a favorable position to supply vessels on global trading routes in tandem with Singapore, the biggest marine fuel bunkering hub. Therefore, maritime cluster businesses like NYK Line, “K” Line, Toyota, and Sumitomo have joined forces with government-related companies and founded Central LNG Shipping Japan Corporation and Ecobunker Shipping Corporation. Technologically, the young joint-ventures specialize in ship-to-ship bunkering, the first time conducted in Japan in October 2020.
Ultimately, this strategy aims to bolster international competitiveness in Japan by improving supply chains and establishing frequent and worldwide direct shipping. In other words: revenue and employment through cargo volume, low cost, and convenience. The number of stopovers at Japanese ports will show the success of this strategy.
Shipping: only one piece of the maritime cluster
Shipping companies, like NYK Line, MOL, or “K” Line ('the big three'), and shipbuilding companies, like Imabari Shipbuilding, JMU, or Oshima Shipbuilding, are at the core of the cluster of maritime industries. Shipping belongs to the service sector, dealing with terminal operators and harbor businesses; shipbuilding belongs to the manufacturing sector, working hand in hand with the marine machinery industry. Naturally, both sectors complement one another. The Japanese fleet - the world’s most valuable merchant fleet - relies heavily on bulk carriers, the vessel type in which Japanese shipbuilders have specialized. Nevertheless, the domestic maritime industries do not (and cannot) solely rely on domestic demand: many ships get chartered and exported. The competition in shipping is so fierce 'the big three' have formed Ocean Network Express (ONE), a joint venture for their container businesses, which is, in turn, part of THE Alliance, one of the major global shipping alliances.LNG bunkering: the key to economic success?
The most prominent government strategy is to become a leading liquified natural gas (LNG) bunkering hub. With stricter regulations by the International Maritime Organization having come into effect in 2020 and the target of cutting greenhouse gas emissions by half until 2050 (compared to 2008), LNG is expected to become a major marine fuel.Japan, the biggest LNG importer, sees itself in a favorable position to supply vessels on global trading routes in tandem with Singapore, the biggest marine fuel bunkering hub. Therefore, maritime cluster businesses like NYK Line, “K” Line, Toyota, and Sumitomo have joined forces with government-related companies and founded Central LNG Shipping Japan Corporation and Ecobunker Shipping Corporation. Technologically, the young joint-ventures specialize in ship-to-ship bunkering, the first time conducted in Japan in October 2020.
Ultimately, this strategy aims to bolster international competitiveness in Japan by improving supply chains and establishing frequent and worldwide direct shipping. In other words: revenue and employment through cargo volume, low cost, and convenience. The number of stopovers at Japanese ports will show the success of this strategy.
