Tankers That Won't Kill You at the Gas Pump

Japanese shipbuilders, leapfrogged by South Korean and Chinese rivals in an industry they once dominated, hope to regain ground by adopting a marketing pitch long used by their country's automakers: fuel economy. A strong yen has made Japanese ships expensive in overseas markets, and "there's a sense of crisis in the medium to long term with the currency," says Hiroshi Minami, president of Oshima Shipbuilding, based in Saikai, Nagasaki prefecture. "We need to focus on more fuel-efficient ships to compete."

Oshima, Imabari Shipbuilding, Japan's largest shipyard, and other local vessel makers have backed proposals for a global fuel-use standard, similar to cars' mileage ratings, to help persuade shipowners to buy Japan-made ships that can cost about 20 percent more than Chinese ones, thanks to the mighty yen. Given the high oil prices, Japanese ships' greater fuel efficiency means cost savings of about $2,700 a day for a typical dry-bulk vessel, based on figures from shipowner Pacific Basin Shipping. "Fuel consumption is what matters," says Klaus Nyborg, chief executive officer of Pacific Basin, whose dry-bulk fleet, excluding charters, is almost 90 percent made in Japan. "It's the difference between breaking even or making a loss."