Contents

Forewords

Features

Countries

Products & Services

Credits

Site Map

Yoshiaki Fukushima, Director General, The Japanese Shipowners’ Association

Equal Footing

Continual improvements to Japan’s shipping industry are strengthening the country’s international competitiveness

The Japanese Shipowners’ Association (JSA) was founded in 1947 with the aim of promoting fair and free business activities in the world of shipping, and contributing to the sound development of Japanese shipping.

To accomplish this, the JSA provides a forum that enables our members to exchange their views and undertakes various activities such as research and publishing. The JSA also represents the Japanese shipping industry by reflecting its position and making comments to governments, international organisations and the general public. As of January 2003, we have 104 member companies.

Strengthening of international competitiveness
To ensure that the Japanese shipping industry is able to compete on the same level as other countries, and to make the industry stand on an ‘equal footing’ with its foreign counterparts, the JSA has been diligently studying various schemes aimed at providing the Japanese industry with an environment that can compete globally. These measures include the following:

• improvement of the shipping-related taxation system including special depreciation for ships (equal footing on taxation);
• realisation of an international ship system that will prove effective in providing the conditions that mirror the second register system of some maritime countries; and
• building of globally-competitive Japanese ports, together with structural reforms and the easing of excessive regulations that are currently imposed on the seafarers’ system in Japan.

Fair and free business: the JSA is examining port reform...

As part of JSA’s activities to realise the various schemes for strengthening the international competitiveness of the Japanese merchant fleet, the JSA has asked the authorities concerned to maintain and expand the shipping tax system to include the special depreciation of vessels. Along with that, as part of its research on the shipping-related taxation system of foreign countries, the JSA has conducted a study on the tonnage-based tax system introduced by major maritime countries. The tonnage taxation issue is making advances in Europe and Korea, and is fast becoming the shipping-related tax system standard. The JSA has been hoping for a similar tonnage tax to be introduced in Japan to enable the Japanese shipping industry to compete under the same conditions as countries that have introduced this tax system. Unfortunately, however, in Japan it may take time to gain the understanding of other interested parties.

Promotion of international ship system
With the proclamation in May 1998 of the partial amendment to the Ship Officers’ Law and its enforcement thereof in May 1999, it has become possible for foreign seafarers, excluding captains and chief engineers, to work on board Japanese-flag ships as officers when they have been certified by the Minister of Land, Infrastructure and Transport.

The JSA has urged the concerned parties to conduct essential training courses and examinations to enable foreign seafarers to acquire the various qualifications needed in manning Japanese-flag ships, such as the certificate for ships’ cooks and the Restricted Operators Certificate (ROC) for radio communications-related work. To this end, as at the end of December 2002, a total of 23 Japanese-flag international ships are operated with such foreign seafarers.

...and supports a tonnage-based tax system for ship

Responding to international problems
Strengthening of maritime security measures in the wake of terrorist attacks and acts of piracy. The JSA has positively participated in discussions at the International Maritime Organization (IMO) and the US concerning the strengthening of maritime security measures. In expressing our views, we pointed out that the intended measures should not impede smooth and effective shipping activities.

Antitrust immunity for agreements among ocean-going shipping firms. Various international and domestic forums have intermittently examined the issue on antitrust immunity for carriers’ agreements. The JSA stressed that the immunity system is beneficial not only in shipping circles but also to the entire trading industry, including shippers. In cooperation with the parties concerned, the JSA has lobbied for the acceptance of its views.

Shipping issues at WTO. Negotiations on maritime transport are being conducted under the WTO Doha Development Agenda within the framework of the new round. While closely monitoring the directions taken by the WTO talks, the JSA has lobbied the Japanese government in an effort to reflect views of the Japanese shipping industry.

Asian Shipowners’ Forum (ASF). At the recent 11th Annual General Meeting of the ASF, held in Taipei, Taiwan, delegates attended from 12 shipowners’ associations in seven Asian countries/regions and discussed issues such as:

• shipping economic reviews;
• ship recycling;
• seafarers;
• safe navigation and environment; and
• ship insurance and liability.

Since its launch in 1992, the ASF has played a vital role in fostering understanding among Asian Shipowners and in expressing their common views. The JSA will continue to positively contribute to the ASF’s agenda.

Driving trade: the JSA has lobbied the government on WTO

Cooperation with relevant organisations
It is one of the JSA’s primary objectives to establish close and regular contacts with the shipping authorities of the world, including those in the US and Europe, and it has exchanged opinions with these countries. Furthermore, the JSA has participated in the activities of the ICS, International Shipping Federation (ISF), International Chamber of Commerce (ICC), Business and Industry Advisory Committee to the OECD (BIAC) and other NGOs. The JSA has also closely monitored the discussions on shipping-related issues at governmental bodies including Consultative Shipping Group (CSG) and IMO to make appropriate inputs when necessary.

At the meeting of the BIAC Maritime Transport Committee in January this year, Mr Yuichi SONODA, General Manager of the JSA International Policy Chamber was appointed as one of the vice-chairmen of the Committee.

Promotion of environmental measures
Even though the Climate Change Protocol of the Kyoto Conference Bill is seeking the reduction in the greenhouse (CO2) gases of developed countries, the greenhouse gases that originate from ocean-going shipping are excluded. The IMO conducted a survey on the reduction of emissions of such gases and the Ministry of Land, Infrastructure and Transport (MLIT) has set up a corresponding study committee. The JSA has positively tackled the promotion of environment measures through joining the related committees.

The need for global regulation
On the other hand, European countries are now discussing tightening the controls on oil tankers navigating EU waters in response to the Prestige disaster. Although the JSA positively supports the initiative for protecting the marine environment and promoting the various ideas, the JSA’s basic stance is that the regulatory measures should be introduced on a worldwide basis, and customised local regulations should be avoided. The JSA will make known its stance to concerned parties through the government and other private bodies.

As part of its environmental enlightenment activities, the JSA held an environmental symposium in March this year for the general public, in addition to environmental seminars for member companies whenever necessary.

Promotion of ship recycling measures
The smooth and efficient scrapping of an anticipated large number of vessels in the near future has become an important issue from the perspective of maintaining an optimum supply and demand equilibrium, preventing the pollution of the marine environment caused by maritime accidents involving aged ships, and making effective use of the available resources. Meanwhile, the improvement of the environment in and around the scrapyards, and the safety and health of workers, have become pressing concerns as well, prompting the IMO, the United Nations Environment Programme (UENP), the International Labor Organization (ILO) and other international organisations to conduct studies on effective improvement measures. The industry working party on ship re-cycling, for example, consisting of major shipping organisations such as the ICS (of which the JSA is a member) or BIMCO, has moved forward in formulating independent programmes for the shipping industry – for ex-ample, the establishment of a code of practice that is directed towards the resolution of ship-recycling problems.

Ship Recycling Liaison Council
The JSA regards ship scrapping as an important part in the recycling of resources. It also considers cooperation among related groups and organisations to be of paramount importance in order to resolve the various problems concerning ship recycling. With this in mind, the JSA called on the participation of the shipping, shipbuilding, ship dismantling and marine equipment industries in Japan, and then founded the Ship Recycling Liaison Council in October 2000.

Recognising the importance of taking into consideration the ability of the major scrapping countries in Asia to cope with the environmental, labour safety and healthcare aspects of the standards on scrapping, the Council decided to conduct a fact-finding study to ascertain whether cooperation with other major scrapping counties was possible. Consequently, a study on ship scrapping in China was conducted in November 2001. After analysing the results of the study on China and the present state of affairs in India and in the other major scrapping countries, the JSA will be striving to strengthen Japan’s ties with Asian countries.

Promotion of bulk carrier safety
The bulk carrier safety issue has been discussed at the IMO from various angles; the IMO is scheduled to discuss the mandatory requirement on double-side construction, the prohibition on the alternate loading method, the restriction of high-density cargoes, and so on. However, it is envisaged that these requirements will adversely affect the smooth operation of bulk carriers. The JSA positively promotes safety measures for ships – however, it is essential that newly-introduced rules should be practical and reasonable. In order to achieve this, the IMO should conduct a detailed investigation of the technical concerns raised when considering the introduction of new regulations. On this issue, the JSA will assert its opinions to the IMO through the government and the ICS.

Issue of foreign seafarers
In order to maintain its international competitiveness, more than 90% of the approximately 2000 vessels that belong to the Japanese merchant fleet are foreign vessels. In addition, foreign seafarers account for at least 90% of the crews that man these ships.

In assessing the present situation, the JSA has recognised the importance of the issues surrounding foreign seafarers, such as the problem of securing a consistent supply of qualified foreign seafarers, their working conditions and so on. Meanwhile, both the employers’ association and the seafarers’ union of the Philippines have raised the concerns on the increase of wages of seafarers on FOC vessels. In this regard, the JSA has expressed its support for the concerns and has strongly appealed to the interested parties against an unreasonable increase in wages.

Furthermore, the JSA has set up the Asian Seafarers Employers Group with other Asian shipowners’ associations in order to closely monitor current seafarers’ issues and to harmonise the Asian voice so as to exert a greater influence on future developments.

As mentioned above, the JSA is keen to enable our members to operate freely without excessive regulatory barriers, and to conduct their business fairly and safely in the international shipping market. The JSA will continue our best efforts to address various problems in order to attain sustainable development of both the Japanese and international shipping industries, and of international trade.

Author: Yoshiaki Fukushima, Director General,
The Japanese Shipowners’ Association.
Website: www.jsanet.or.jp

Geo-Economic and Port Data