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preface |
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History chart |
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Unprecedented Recession in the Shipping Industry |
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The Shift toward Specialized Cargo Carriers |
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Ore Carriers/Coal Carriers
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Tankers
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LPG and LNG Carriers
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Heavy-Cargo Carriers
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Car Carriers
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Woodchip Carriers
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Quantitative Expansion Begets Qualitative Change |
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MENU |
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In this issue, we will present "K" Line's history from 1975 to 1979. The trend toward larger, specialized ships that began in the late 1960s was gaining momentum against the backdrop of growing demand for transport services and modernization of port facilities. This trend subsequently led to reductions in ocean transport costs.Era of Rapid Economic Growth '68-'74 |
 "PACIFIC HIGHWAY" |
 "BISHU MARU" |
 "SUMIDAGAWA" |
 "MALACCA MARU" |
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In 1975 the global shipping industry was beset with hard times. Demand for cargo space had failed to keep pace with a growing over-tonnage exacerbated by the successive completion of new ships ordered during the 1973 boom. It was not until 1977 that the new-building growth rate finally subsided. During this period, new full-container ships, LNG carriers, car carriers and heavy-cargo carriers were steadily being built in response to new demand, although space-wise they only occupied a small portion of all the space of the merchant marines over the world. |
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Ore Carriers/Coal Carriers |
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Tankers |
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LPG and LNG Carriers |
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Heavy-Cargo Carriers |
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Car Carriers |
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Woodchip Carriers |
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The steel industry's consistent investment in modernization since the end of the war had paid off. Steel production had grown increasingly important as the core basic industry. The resultant sharp rise in demand for iron ore prompted steel makers to try to reduce freight costs through bulk transport and to stabilize transport costs through stable, long-term freight rates. In response to this trend, shipping lines increasingly switched to specialized carriers and attempted to ensure consistent income through long-term transport contracts. To cut costs, shipping lines were also gradually enlarging their ships in response to the trend toward longer voyages and improvement of port facilities. Another commodity increasingly in demand was coal-both coking coal and coal in general including steam coal which was used as an alternative to oil. New coal carriers were built in rapid succession for electric utilities in particular. |
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During the five years preceding the oil crisis, the global economy enjoyed brisk growth. Reflecting this growth, the volume of seaborne oil shipments increased, prompting the world's shipowners to embark upon a race to build supertankers. Alas, the boom proved to be fleeting. Demand for oil sharply contracted, resulting in a glut of tanker space. |
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Japan's economic plan for 1975 to 1980 placed priority on stabilizing imports of energy and other resources and diversifying their sources of supply in the aim of ensuring Japan's economic security and laying a foundation for long-term growth. Most notably, the plan advocated boosting imports of liquefied natural gas (LNG) and securing stable means of importing energy. In September 1974, "K" Line placed the newly-built LPG (liquefied petroleum gas) carrier "SUN RIVER" into service. Then, in August 1983, the "BISHU MARU," Japan's first LNG carrier, was completed. Mainly composed of methane, LNG attracted people's attention as a form of clean energy. |
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In 1970 "K" Line completed the "TOYOTA MARU" No. 10 and No. 11, Japan's first PCCs (Pure Car Carrier, a name coined by "K" Line), both of which could accommodate 2,000 cars. Emboldened by the rapid growth in auto exports that accompanied the remarkable development of Japan's auto industry, "K" Line subsequently continued to take the initiative in building larger PCCs, supported by Toyota and other auto makers. In December 1973 "K" Line completed the "EUROPEAN HIGHWAY," the world's largest PCC, boasting capacity for 4,200 compact cars. |
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As Japan's economy grew in size, paper consumption rapidly increased, fueling steady growth in demand for pulp and woodchips, the raw materials of paper production. Japanese shipping lines began to build woodchip carriers to import these materials from overseas. |
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The ships used to transport raw materials for steel production changed from small, single-cargo carriers to ship models able to flexibly accommodate other cargoes. In contrast, the ships used to carry automobiles have become more specialized, evolving to preclude the possibility of conversion to other cargoes. In addition, the market is demanding technological innovation and improved efficiency to accommodate changes in the composition of automobile exports, such as the increase in exports of commercial vehicles and larger vehicles. |
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(in thousands of tons) |
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