MOL battens down, but ready to put on steam in coming upturn

REDUCING losses in the global economic downturn has been Job One for Japanese shipping giant MOL, but company president Akimitsu Ashida told employees in his New Year's address that they must also be ready to put on speed in the coming upturn.

"In the world economy outside of Japan, the US and Europe are heading towards recovery, and the continued strong growth of developing countries such as China, India, and Brazil will almost certainly see further expansion of seaborne trade volume," he said.

"For our future growth, MOL must take maximum advantage of the opportunities presented by the world economic growth. While there are a number of obstacles, ocean shipping is a growing industry," said Mr Ashida.

Speaking figuratively of instructive battle tactics in history and the behaviour of Japanese wildlife, Mr Ashida said: "Like the rai-cho [Japanese nesting grouse] tucked into snow holes during winter, we protect and shelter ourselves during the harsh business climate to seize favourable opportunities once circumstance picks up.

"While the measures we have already taken will continue to reduce losses in the containership business significantly, unfortunately the very difficult environment of the container business is forecast to continue for another three or four years," he said.

"Under these circumstances, we must be firm in our resolve to avoid the large losses we saw in FY2009 and strive to maintain at least some level of profitability. Despite what appears to be a dire situation facing the containership business, I am confident that we will overcome whatever hurdles may come our way," said Mr Ashida.

(Source: www.schednet.com)