Japanese Leaders Reflect on “The Year of the Snake”
In his New Year’s greetings, NYK President Takaya Soga reflected on the disasters of 2024 and looked forward to change in 2025.
“This year is the Year of the Snake, and when combining the 12 zodiac signs with the 10 heavenly stems, it is referred to as ‘Kinotomi.’ The Year of the Snake symbolizes regeneration and change, inspired by the image of the snake shedding its skin,” said Soga. “The stem “Ki” also represents flexible growth despite challenges. I hope that we can face difficulties with resilience and make significant progress through various transformations in 2025.”
This year marks the 140th anniversary of NYK’s founding, and Soga said that despite extreme weather events, ongoing geopolitical conflicts and significant political changes, including the defeat of ruling parties in major countries, NYK is expected to achieve an operating profit of 410 billion yen ($2.6 billion), significantly surpassing last year's results.
“So, what will the year 2025 hold for us? The general consensus is that the economy in the United States, the backbone of the global economy, will continue to perform well under President Trump. While import tariffs may rise, as long as the U.S. economy remains strong, we do not anticipate a significant decrease in purchasing volume. Consequently, we expect some level of demand for transportation to be sustained, along with opportunities arising from deregulation policies.
“Furthermore, should the Russia-Ukraine conflict move toward peace—something we all hope for—the subsequent reconstruction demand in Ukraine could be substantial. Capturing such demand will present significant opportunities for our group. However, we must remain vigilant, as there are concerns that President Trump’s handling of immigration policies could lead to a decrease in the labor force and purchasing power of immigrants, which could adversely affect the economy.
“On the other hand, countries like China are attempting to compensate for domestic demand stagnation through export expansion, while EU nations exhibit uneven economic strength. Despite a slight slowdown recently, countries like India and regions in Africa are expected to experience significant growth in the medium to long term.”
In his new year’s message, Takeyuki Takahashi, President & CEO of MITSUI E&S, also pointed to disasters including Noto Peninsula earthquake.
“There were also significant economic and political changes, such as the negative interest rates being raised, the depreciation of the yen, and the ruling party losing its majority in the House of Representatives. Internationally, it was a year of great change, with natural disasters affecting countries around the world and elections being held in over 70 countries.”
MITSUI E&S saw a recovery in profitability, significantly reduced interest-bearing debt, and improved financial position. “As we enter our third year as the new MITSUI E&S, we aim to solidify our earnings base and demonstrate domestically and internationally our sustainable growth going forward.”
He highlights orders for dual-fuel engines and the development of engines for new fuels such as ammonia and hydrogen. Additionally, the company has developed zero-emission cranes and started demonstration tests at the Port of Los Angeles in the United States.
“On the digital front, we are focusing on providing new services using digital transformation technologies and developing simulation software to improve the efficiency of port terminals using digital twins.”
Mitsubishi Heavy Industries (MHI) President and CEO Seiji Izumisawa said in his message that, after recording the highest-ever annual results for order intake, revenue and business profit in FY2023, the company has made a good start in FY2024, with results in the first half coming in very close to target.
“On the international stage, tensions remain high, and changes of government around the world have made the future course of events uncertain. Earthquakes, typhoons and other natural disasters have highlighted the urgent need for environmental action. The world is at a crossroads, but MHI Group will stay the course and continue providing social infrastructure to support safe, secure living.”