L4 Logistics | Transport Shipping and Logistics News

Each contract is for a 300,000 DWT VLCC (very large crude-oil carrier). For ExxonMobil, NYK will deliver a new vessel constructed by Mitsui Shipbuilding Co. Ltd., and for China Oil, NYK will provide a new vessel constructed by Nantong Cosco KHI Ship Engineering Co., Ltd. (NACKS). Construction of both ships will be completed during the first half of 2007.The new charter contracts will be the third such contract between NYK and ExxonMobil and the second between NYK and China Oil. Upon commencement of these charter contracts, the number of VLCCs used in overseas services will increase to eight, the largest number in service for any Japanese company. NYK began its drive into overseas markets in 2003, when it had only three vessels engaged in such operations. However, the percentage of overseas contracts has steadily increased and is expected to rise to approximately 23 percent by the end of 2007 from 10 percent in 2003. NYK currently has 33 VLCCs in service and plans to increase this number to around 40 in the near future.In accordance with "New Horizon 2007," NYK's medium-term group management plan established last spring, the company has been maintaining and expanding business with existing customers in Japan, but has also been expanding the company's fleet and developing business with new overseas consumers, especially in the bulk/energy transport business division. Much of this expansion has occurred with the cooperation of NYK offices overseas such as NYK Bulkship in the United States,China,United Kingdom and Singapore. In particular, NYK has been putting emphasis on large-sized crude-oil carrier services because of the expected rapid increase in crude-oil transportation demand in countries such as China and India.It is likely that NYK has been successful in its drive to expand business partnerships with overseas companies chiefly because of the emphasis that NYK places on safety. The company's record and sincere attitude have received positive reviews from ExxonMobil and others, thus helping to deepen the trust that they have placed in NYK.Source: Press Release