NYK Group’s investments in newbuildings will soar from 2030 as it steps up its zero emissions efforts.
Chief executive Takaya Soga told the TradeWinds Shipowners Forum in Tokyo that future spending on vessels will far exceed the JPY 1.2trn ($8.04bn) it plans to spend between 2023 and 2026.
He said the increase will take the form of ordering alternative-fuel vessels.
NYK recently launched the world’s first ammonia-fuelled tugboat for commercial use. It believes ammonia-fuelled vessels will be developed and commercialised after 2030.
“Our investment for the new energy type of ships will start from 2030,” said Soga.
NYK, which ordered many expensive bulk carriers during the market peak in the 2000s, said it has disposed of most of those vessels.
Soga said his company is ready to start ordering dry bulk tonnage. However, it will be prudent on new investments after its last experience.
He said the current price of new ships is high due to expensive parts and other costs. He believes prices will continue to rise and told the delegates that the industry needs to accept this reality.
NYK will continue to transport oil as long as demand is present, but it is looking to reduce the carbon emissions from its tankers.
“Together with some of our customers, we are talking about new energy usage for the tankers … like using LNG or other new fuel,” he said. “Some of the customers are accepting this.”
Soga expects new trades will be arising in some of the new energy sources such as ammonia, hydrogen and even CO2.
He thinks the rising demand for new energies will give rise to opportunities for shipping.
“Particularly the demands for ammonia — it’s not only for fuel use, but also for common use, in particular for blue or green ammonia,” he said.
A listed company with a diversified fleet of almost 800 vessels, NYK has a social responsibility to integrate economic, social and environmental concerns while running daily operations, the CEO said, so it requires a diversified fleet.
The range of ship types it operates also forms a hedging tool to help spread risk.
NYK is one of the three owners of the liner company Ocean Network Express, alongside Mitsui OSK Lines and K Line.
Soga believes consolidation of container ship companies may take place in the future, especially for the smaller players.
Size is important for the liner sector, he added, and huge investment will be required for new terminal construction and alternative-fuel vessels — which may not be possible for some small companies.
