Message from the President on the 139th Anniversary of NYK’s Founding

Today marks the 139th anniversary of NYK, and we celebrate this special occasion together. I would like to express my gratitude to all of you for your hard work and to honor those before us who faced and overcame great difficulties.

Our Current Environment

The world has finally recovered from the COVID-19 pandemic, and business activities are back to normal. However, during the pandemic, governments around the world made it easier to get money, leading to a sharp rise in stock prices. The differences in interest rates between countries caused the yen to lose value. This financial situation has impacted our business. On top of that, global conflicts and divisions are creating risks for businesses like ours. In Japan, labor shortages are affecting all industries, including ours, making it hard to find the right crew and engineers.

We are now facing big changes, which we can think of as a new era. During this time, we need to stay aware of what’s happening around us and be ready to adapt quickly. We should work together as a team to make the necessary changes for our business to succeed.

Ocean Network Express orders 12 methanol dual-fuel container ships

Our Medium-Term Management Plan

We are in the second year of our medium-term management plan. The main focus of this plan is to make our core businesses stronger through ESG (Environmental, Social, and Governance) management. By doing this, we can use the money we make to explore new business opportunities and increase our overall value as a company. To support this, we are working to create an environment where every employee can thrive and show their unique talents. We are also focusing on developing new, innovative ideas, using digital tools to improve our processes, and helping society by contributing to the energy transition.

Looking at our progress so far, we’ve made some changes, like stepping away from businesses that could face sanctions. We’ve also continued to invest in new ships and business acquisitions, which is helping strengthen our main business. In addition, we are working on new projects, especially in the area of decarbonization, with the help of partners such as shipyards, equipment makers, and local governments.

When it comes to the energy transition, all of our teams have been working together to meet the goals we set in our Decarbonization Story. With the introduction of the European Union Emissions Trading System (EU-ETS) this year, we have been well-prepared thanks to the efforts of our ESG Strategy Headquarters. Next year, we’ll face new regulations from the FuelEU Maritime initiative. Although these regulations will make emissions more costly, our early efforts in fuel transition put us ahead of the competition.

Focus Areas: People and Technology

While some areas of our business need changes, others, like people and technology, need strengthening. When it comes to people, we are working to create a system where all 35,000 of our employees around the world can perform at their best. We are promoting Diversity and Inclusion (D&I) within the company and making progress with our CX NEO initiative, which is designed to support and motivate our maritime employees.

In terms of technology, we take pride in our achievements in decarbonization, where we are one of the leading companies in the shipping industry. However, as our business grows, we can’t always hire more people, so we are focusing on labor-saving technologies. Digital Transformation (DX) plays a key role here, helping us maintain high-quality operations with fewer people, whether on ships, in offices, or in logistics centers.

We’ve already started projects like setting up advanced communication systems, testing autonomous vessels, and creating automated warehouses with robots. But it’s important for everyone to keep thinking about how we can make our processes even more efficient.

However, with more digital technology comes the risk of cyberattacks. We are continuously improving our defenses, but ultimately, each one of us, including myself, must stay alert to protect our company.

Capital Policy and Future Plans

Our capital policy is also a big part of our management plan. Specifically, we are making sure that any extra profits are returned to shareholders and stakeholders while still investing in the business.

In closing, despite the uncertainty in today’s world, such as the conflicts in the Middle East and upcoming elections in the U.S., we must move forward with courage, flexibility, and optimism. Just like those before us, let’s face the future with strength and hope. I look forward to celebrating NYK’s 140th anniversary with even greater success.