NYK battled intense competition, a slowdown in international trade, a weak domestic economy, and a strong yen throughout much of the 1990s. During this time period, the Japanese shipping industry was changing dramatically. Competitors from Taiwan, South Korea, China, and Hong Kong began to secure large portions of the shipping market. High costs in Japan were forcing NYK and its competitors to reflag their ships and hire foreign seamen. In fact, the Japanese Shipowners Association predicted that the number of Japanese-flagged ships would decline to less than 100 by 2000—there were 1,028 in 1985. At the same time, Japanese exporters began building their factories overseas, thus eliminating a major source of business for Japanese shipping companies.