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The President of Mitsui OSK Lines (MOL) has said that the global economic downturn is an 'act of providence', which will help to reduce overall costs, especially in bunkers and lubricants.

Speaking in his new year's message entitled "MOL New Deal", president Akimitsu Ashida repeated Panasonic Group founder Konosuke Matsushita's words, who once said "Boom is welcome. Recession is more welcome."

"For the shipping industry, recession can be positively understood as a process to adjust current and future over-tonnage situation. And, for a respective company, recession makes its weakness apparent, which is invisible under normal circumstances, and leads to the next rapid progress if proper efforts are rendered to overcome such weakness," he said.

Ashida believes the scrapping of aged vessels will be accelerated due to the recent market deterioration and will favorably contribute to adjust demand and supply balance of world tonnage.

Speaking about the effect of the economic slowdown on marine fuel prices, Ashida said "What's more, we will have more possibility in reducing overall costs especially in maintenance and repairs, bunkers and lubricants, the price of which went up sharply due to the hike of material and crude oil prices for some years."

As part of the company's short-term strategy, Ashida said MOL will endeavour to reduce costs and risk. The Tokyo-based firm has also begun the cancellation of expensive charterages, scrapping aged vessels, lay-up of excess vessels, and redelivery of excess chartered vessels.

As to MOL's mid-term and long-term strategy, Ashida said "in order to prepare for future increase of demand in seaborne trade, we will fulfill our fleet plan to enhance and expand our competitive tonnage. This basic strategy remains unchanged."

"I am sure that, in the mid-to-long term, the global trade and needs for ocean shipping will keep expanding in line with the growth of world population and globalization. Therefore, if we carry out "MOL New Deal" seriously and steadily to change a pinch into a chance, we will definitely get a chance to make significant progress again," concluded Ashida.