On the evening of February 27, 2024, the Fukuoka Financial Group (FG) held the 11th Fukuoka Flagship meeting at the Nishitetsu Grand Hotel in Fukuoka City. At the opening, Hisashi Goto, President of Fukuoka FG (and CEO of Fukuoka Bank), addressed the gathering, stating, “This is our first networking event in five years since the onset of COVID-19 in 2019, and we are pleased to have over 200 participants, the highest ever. Our shipping loan balance has exceeded JPY 400 billion, and with the inclusion of committed credit lines, it has grown to JPY 570 billion, thanks to the support of everyone present here today.”
The Fukuoka Flagship Club, an annual networking event that gathers shipowners, shipbuilders, trading companies, marine equipment manufacturers, classification societies, and insurance professionals with business ties to Fukuoka Bank, was held at a hotel in Fukuoka City. This marks the first occasion in five years since the event was temporarily suspended due to the outbreak of the coronavirus.
The networking party saw participation from shipowners from Imabari (Ehime Prefecture), Kure (Hiroshima Prefecture), Nagasaki, Yamaguchi, Hiroshima, and Okayama, bringing together key figures from Japan’s maritime cluster.
Fukuoka Bank has been involved in ship financing since 2005, about 20 years ago, focusing primarily on Japanese shipowners while also engaging in transactions with shipyards. In recent years, there has been an increase in financing opportunities for Japanese shipowners from overseas operators. Fukuoka Bank has been actively supporting Japanese shipowners by managing credit for these international operations.
Mr. Goto, in his speech, addressed the current challenging environment of the maritime industry, including issues such as the weak yen (around 150 yen to the dollar), inflation both domestically and abroad, and labor shortages, while also noting a positive trend in the economy as indicated by the Nikkei Stock Average reaching record highs, surpassing even the bubble era’s peak values last weekend.
Toru Sasaki, Chief Strategist at Fukuoka FG, who joined the company three months ago, provided a brief explanation on future foreign exchange rates. Mr. Sasaki, a former JP Morgan Chase Bank employee and a top-ranked currency analyst according to Nikkei Veritas, predicted that the target for this year would be between 158 to 160 yen to the dollar, citing the strong performance of the US economy, which grew by a real 4% last year, in contrast to Japan’s contraction. The gap between the two economies is unprecedented, he noted, attributing the US’s strength to protectionist policies encouraging domestic investment in sectors like semiconductors, even amidst high-interest rates, and to American households’ substantial investment in stocks, which comprise 40% of their financial assets.
Katsutoshi Sugahara, President of Sugahara Kisen, made a toast, urging unity for the advancement of the maritime industry.
Yoshikazu Tanaka, President of Fukuoka Shipbuilding, in his closing remarks, discussed the challenges facing the shipbuilding industry, acknowledging the high prices of ships due to increased steel prices and the thin profit margins for shipyards, while expressing gratitude towards Fukuoka Bank for their support.
The term “Japanese maritime cluster” refers to a comprehensive network that includes cargo owners, maritime transport, shipbuilding, shipowners, finance, insurance, and marine equipment, enabling the conduct of maritime business entirely within Japan. However, it’s rare for Japanese shipping operators or cargo owners to attend parties organized by regional banks or shipowners. The absence of domestic ship operators and cargo owners was noted at this event as well. The term “maritime cluster” is sometimes used to specifically refer to the “ship ownership business,” including Japanese shipowners, shipbuilders, regional banks, and marine equipment suppliers.
