PRESS RELEASE

THE ASF CONDEMNS PIRACY AND SHIP HIJACKS

On 28 June 2010, the Asian Shipowners’ Forum (ASF) has sent a same letter to both the UN Secretary General Mr Ban Ki – Moon and the IMO Secretary General Mr Efthimios Mitropoulos highlighting the serious concerns and continuing problem of piracy and ship hijacks in the Gulf of Aden, the Somali Basin and in the Indian Ocean. The letter expressedly condemns the criminal acts and dangers of Somali pirates on maritime security and the safety of international shipping and trade, The ASF strongly urges the UN and IMO, both in their individual and collective capacities, to act within their supreme power immediately to counter the state of lawlessness and to restore the safety of maritime navigation in the Gulf of Aden and off the coast of Somalia and in the Indian Ocean.

Mr Johnson W. Sutjipto, the Chairman of the ASF said, “The situation has gotten out of hand – the lack of action on the part of the international community has resulted in an almost 500% increase in the number of attacks over the past 3 years. As such, the ASF views this as a matter of extreme urgency, and strongly urges the adoption of an united and dynamic approach to deal with the root of the piracy problem in the Gulf of Aden and off the coast of Somalia. ”

Mr S S Teo, the Chairman of the ASF Ship Navigation and Environment Committee, remarked, “Many ships and crews have been kidnapped in these 2 years by those Somali pirates for extorting heavy ransom from shipowners to secure their release. In addition to the massive ransoms paid by the shipping community, the financial burdens associated with maritime piracy include, among other things, excess fuel costs and higher insurance premiums. This is an utterly unreasonable burden and cost to the shipping industry - more decisive action must be taken immediately! ”

Mr Yasumi Kudo, Chairman of the ASF Shipping Economics Review Committee, added, “Given the inherent volatility of some commodity markets, high profile incidents of maritime piracy can have serious economic impacts far beyond their immediate target. The Gulf of Aden is an important stretch of waters where many fully laden ultra large crude oil carriers (ULCC) transit from the Middle East to Asia. These pirate attacks, if allowed to persist, can result in serious environmental consequences and also cause further fluctuations in the global price of crude oil.”

Mr Li Shanmin, the Chairman of the ASF Seafarers Committee also commented, “We must also consider the immeasurable human cost. We must protect the innocent lives of our seafarers and to give their families a peace of mind when their close-kin sail the sea. We need the UN and IMO to take immediate steps to counter this problem as it has also aggravated the shortage of seafarers’ supply with such a situation. Many potential seafarers are now afraid to go to sea!”

Mr Yuichi Sonoda, the ASF Secretary General, echoed, “The Asian shipping industry as well as the global shipping industry is extremely concerned about the situation. The current lawlessness and the lack of a credible deterrent appears to have encouraged the spread of pirate attacks to other areas of Africa and elsewhere. The ASF wants the UN and IMO to take urgent and effective action to remove the intolerable threats on international shipping and their effects on the smooth flow of global trade.”

For further information, please contact Mr Yuichi Sonoda, Secretary General of the Asian Shipowners’ Forum, at the contact address shown in the header. Please also visit ASF’s website www.asianshipowners.org.

* * * * *

Notes

The Asian Shipowners’ Forum (ASF) is a voluntary organisation of shipowner associations and its aim is to promote the interests of the Asian shipping industry. It is estimated that the ASF represents about 50% of the world’s cargo carrying fleet.

The ASF consists of the following 8 members:
Australian Shipowners Association (ASA)
China Shipowners’ Association (CSA)
Federation of ASEAN Shipowners’ Associations* (FASA)
Hong Kong Shipowners Association (HKSOA)
Indian National Shipowners’ Association (INSA)
Japanese Shipowners’ Association (JSA)
Korea Shipowners’ Association (KSA)
National Association of Chinese Shipowners (NACS)

*FASA is composed of:
Filipino Shipowners’ Association (FASA-FSA)
Indonesian National Shipowners’ Association (FASA-INSA)
Malaysian Shipowners’ Association (FASA-MASA)
Myanmar Five Star Line (FASA-MFSL)
Singapore Shipping Association (FASA-SSA)
Thai Shipowners’ Association (FASA-TSA)
Vietnam Shipowners’ Association (FASA-VSA)

Between the ASF AGMs, the ongoing work is carried out by the five Standing Committees;
Seafarers Committee (SC)
Shipping Economics Review Committee (SERC)
Ship Insurance and Liability Committee (SILC)
Safe Navigation and Environment Committee (SNEC)
Ship Recycling Committee (SRC)

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PRESS RELEASE

THE ASF JOINS WORLD TO END PIRACY

The Asian Shipowners’ Forum (ASF) joins forces with a coalition of organisations, ranging from trade unions to shipowners’ associations and insurers, to back a global e-petition, www.endpiracypetition.org, demanding concrete actions to end maritime piracy that is placing seafarers’ lives at risk and threatening the international shipping and the world trade.

Mr Johnson W. Sutjipto, the Chairman of the ASF said, “The ASF supports this coalition. This is an important step that we, as Asian shipowners, have to take in order to protect our seafarers. We have also informed the organisers of this move to include the ASF in the future in such meaningful campaigns.”

Mr S S Teo, the Chairman of the ASF Ship Navigation and Environment Committee, added, “The situation has become uncontrollable and we have to put a quick stop to these criminal activities. The ASF member shipowners’ associations have all urged their staff and families, their member shipping lines including their national and overseas affiliated companies, etc etc to participate in this e-petition.”

Mr Li Shanmin, the Chairman of the ASF Seafarers Committee, said, “We hope that with this joint effort, the Governments of all nations will heed this urgent request, and we can be sure that the livelihood of the seafarers and their families can be safeguarded.”

The Secretary General of ASF, Mr Yuichi Sonoda, also echoed the same sentiments. He added, “As 90% of the world trade is carried by sea, all shippers and cargo owners are also encouraged to join in the e-petition as the cost of piracy could ultimately be passed on to the consumers. Therefore it is paramount for each and every one of us to be actively involved. This e-petition is intended to deliver at least half a million signatures to governments by IMO World Maritime Day on 23 September 2010.”

For further information, please contact Mr Yuichi Sonoda, Secretary General of the Asian Shipowners’ Forum, at the contact address shown in the header. Please also visit ASF’s website www.asianshipowners.org.

* * * * *

Notes
The Asian Shipowners’ Forum (ASF) is a voluntary organisation of shipowner associations and its aim is to promote the interests of the Asian shipping industry. It is estimated that the ASF represents about 50% of the world’s cargo carrying fleet.

The ASF consists of the following 8 members:
Australian Shipowners Association (ASA)
China Shipowners’ Association (CSA)
Federation of ASEAN Shipowners’ Associations* (FASA)
Hong Kong Shipowners Association (HKSOA)
Indian National Shipowners’ Association (INSA)
anmar Five Star Line (FASA-MFSL)
Japanese Shipowners’ Association (JSA)
Korea Shipowners’ Association (KSA)
National Association of Chinese Shipowners (NACS)

*FASA is composed of:
Filipino Shipowners’ Association (FASA-FSA)
Indonesian National Shipowners’ Association (FASA-INSA)
Malaysian Shipowners’ Association (FASA-MASA)
My
Singapore Shipping Association (FASA-SSA)
Thai Shipowners’ Association (FASA-TSA)
Vietnam Shipowners’ Association (FASA-VSA)

Between the ASF AGMs, the ongoing work is carried out by the five Standing Committees;
Seafarers Committee (SC)
Shipping Economics Review Committee (SERC)
Ship Insurance and Liability Committee (SILC)
Safe Navigation and Environment Committee (SNEC)
Ship Recycling Committee (SRC)

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The ASF calls for a stop to piracy attacks on merchant ships

The Asian Shipowners’ Forum (ASF), at its 19th annual meeting held today in Hong Kong, expressed its strong concern at the continuing attacks on merchant ships and urges the world’s navies to increase their protection of ships passing through the Gulf of Aden and the Western Indian Ocean. “The situation has become a serious crisis, one that deeply affects seafarers and their families and the carriage of world trade, and while we are grateful for their protection, it would seem that the rules of engagement are not effective to stop and punish the attackers”, said Mr SS Teo, the SNEC Chairman.

Mr George Chao, the SILC Chairman added “And the deliberately vague Executive Order issued by the President of the United States is only adding to the confusion, by apparently seeking to restrict the ability of shipowners to free their seafarers from kidnap while not offering anything in return that would ensure the protection of our seafarers.”

Mr Kenneth Koo, the Chairman of the 19th ASF, said “We call upon the world’s governments to seek a realistic and final solution to this crisis. It is clear that any lasting solution will only be found on land, not at sea, but yet there seems to be very little that is being done on land in Somalia by the world’s governments to stop the activities of these pirates.”

The ASF noted that despite recent indications of a gradual recovery of the world economy, it is clear that this might not yet be sustainable. Mr Yasumi Kudo, Chairman of the SERC said, “The situation remains difficult, and we call upon the Panama Canal Authority to reassess the apparent need to increase Panama Canal tolls at this particular time.”

The ASF expressed its deep concern over the proposals being made on Seafarer rest hours in the draft revisions to STCW that will be discussed at the diplomatic conference in Manila in June. Mr Li Shan Min, the SC Chairman said “The proposals made so far do not reflect the reality of the shipping industry. There are times during short term peak workloads when seafarers must be able to continue to work for safety and exceptional operational reasons or to comply with port authority requirements”. The ASF agreed that it is essential that the final text of the STCW revision contains the ability for administrations to grant exceptions to stipulated daily rest hours while retaining the stipulated weekly limits in order to ensure the ship’s crew is adequately rested.

The members of the ASF once again gave their full commitment towards the protection of the environment, recognizing in particular the importance of the reduction of GHG emissions. Mr. Kenneth Koo, the 19th ASF Chairman, said, “The protection of the environment is the most important issue that our industry must handle in order to build a sustainable future. It is essential that we give our utmost towards developing new concepts and ideas, as well as to work towards continuous improvement of our existing practices.”

The members of the ASF confirmed their support for the Hong Kong Convention for the Safe and Environmentally Sound Recycling of Ships, 2009, and calls upon all States to consider early ratification of the Convention. Mr Bronson Hsieh, the SRC Chairman said “While we await the entry into force of the Convention, we urge all owners to consider early production of the inventory of hazardous materials and compliance with the Ship Recycling Guidelines issued by the International Organisations.”

For further information, please contact Mr Yuichi Sonoda, Secretary-General of the Asian Shipowners’ Forum, at the contact address shown in the header. Please also visit ASF’s website www.asianshipowners.org.

* * * * *

Notes
The Asian Shipowners’ Forum (ASF) is a voluntary organisation of shipowner associations and its aim is to promote the interests of the Asian shipping industry. It is estimated that the ASF represents about 50% of the world’s cargo carrying fleet.

The ASF consists of the following 8 members:
Australian Shipowners Association (ASA)
China Shipowners’ Association (CSA)
Federation of ASEAN Shipowners’ Associations* (FASA)
Hong Kong Shipowners Association (HKSOA)
Indian National Shipowners’ Association (INSA)
Japanese Shipowners’ Association (JSA)
Korea Shipowners’ Association (KSA)
National Association of Chinese Shipowners (NACS)

*FASA is composed of:
Filipino Shipowners’ Association (FASA-FSA)
Indonesian National Shipowners’ Association (FASA-INSA)
Malaysian Shipowners’ Association (FASA-MASA)
Myanma Five Star Line (FASA-MFSL)
Singapore Shipping Association (FASA-SSA)
Thai Shipowners’ Association (FASA-TSA)
Vietnam Shipowners’ Association (FASA-VSA)

Between the ASF AGMs, the ongoing work is carried out by the five Standing Committees;
Seafarers Committee (SC)
Shipping Economics Review Committee (SERC)
Ship Insurance and Liability Committee (SILC)
Safe Navigation and Environment Committee (SNEC)
Ship Recycling Committee (SRC)

The 13th Interim Meeting of the ASF Ship Recycling Committee was held in Hong Kong on 29 March 2010. The meeting was attended by thirteen delegates from the ASF member associations of China, Chinese Taipei, Indonesia, Vietnam, Hong Kong, and Japan. The attendance list is attached.

The Committee was hosted by the National Association of Chinese Shipowners (NACS) and chaired by Mr. Bronson Hsieh, who succeeded Mr. Arnold Wang as the Chairman of the ASF SRC and the Chairman of the NACS in October 2009.
The delegates expressed their appreciation to the Hong Kong Shipowners Association (HKSOA) for arranging this meeting in Hong Kong.

1. The SRC noted that the Diplomatic Conference took place in May 2009 in Hong Kong and adopted the “Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships, 2009”. The Committee supports the Convention and urges IMO Member States to ratify it as soon as possible in order to achieve the safe and environmentally sound recycling of ships.
In this respect, the SRC welcomed that France became the first country to sign the Convention in November 2009 and that the Indian government announced that the related domestic regulations would soon be submitted to the Cabinet for ratification.
The Committee also noted that, in July 2009, the IMO 59th Marine Environment Protection Committee (MEPC59) approved the text of the “Guidelines for the Development of the Inventory of Hazardous Materials”.
The SRC urges IMO to develop other Guidelines as early as possible for the smooth implementation of the Convention in future.

2. Since it would appear that the Convention may enter into force within a couple of years, the SRC recognized the great importance of the early development of the Inventory of Hazardous Materials especially for existing vessels. Shipowners were specifically warned that it is their statutory obligations to produce the Inventory list of their vessels within 5 years of the entry into force of the Convention.
The Committee, at the same time, confirmed that the preparation of the Inventory would need the full-scale involvement of governments, classification societies, shipbuilders and ship equipment manufacturers who have special knowledge of the construction of and equipment fitted to ships due to lack of adequate resources and expertise of shipowners to prepare the Inventory.

3. The SRC noted that the “Guidelines on Transitional Measures for Shipowners Selling Ships for Recycling” was issued in October 2009 by the Industry Working Group on Ship Recycling, which is coordinated by the International Chamber of Shipping (ICS). The Guidelines are aimed at enabling the shipping industry to minimise potential problems before the new Convention enters into force and to help ensure that redundant tonnage is disposed of safely. The Committee recognized that the Guidelines are helpful for the disposal of obsolete and less-efficient ships for recycling in compliance with the Convention.

4. The SRC welcome and accepted the FASA-VSA proposal to host the 14th Interim Meeting in Hanoi.

5? Finally, it was confirmed that Asian shipowners, as the major players in the world shipping industry, will continue to discuss the ways in which shipowners can promote safer and more environmentally sound ship recycling.

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PRESS RELEASE
1.
The 18th Interim Meeting of the Asian Shipowners’ Forum (ASF) Safe Navigation & Environment Committee (SNEC) was held in Singapore on 19 March 2010. It was hosted by the Singapore Shipping Association (SSA).
2.
The meeting was attended by 19 representatives of shipowners’ associations from China, India, Japan, Korea, Chinese Taipei and ASEAN, as represented by the Federation of ASEAN Shipowners’ Associations (FASA) which is composed of the shipowners’ associations of Indonesia, Malaysia, Philippines, Singapore, Thailand and Vietnam.
3.
Mr. S.S. Teo, President of Singapore Shipping Association chaired the SNEC meeting on behalf of FASA.
4.
During the meeting, the Committee considered and discussed various current issues concerning the safe navigation of ships and the protection of the marine environment.
5.
On the Piracy and Armed Robbery problem manifested worldwide, the Committee expressed grave concern on the almost 40% increase in the number of pirate incidents in 2009 as compared with 2008. In particular, the Committee noted that over 50% of the reported incidents had taken place in waters off Somalia, in the Gulf of Aden and the Red Sea, with 47 vessels hijacked and 867 crew taken hostage.
Recognizing the very serious threat of imminent pirate attacks and hijacks in the Gulf of Aden, the Meeting strongly urged all Governments and the United Nations to take more actions to deal with this problem and to help protect international shipping through the Gulf of Aden and off the coast of Somalia. Meanwhile, the Committee agreed that all transiting ships should remain highly vigilant and adopt the Best Management Practices approved by the International Maritime Organisation (IMO) to tackle this pressing problem. Shipowners should adopt the voluntary reporting system provided by the Maritime Security Centre – Horn of Africa (MSCHOA) and to seek the assistance of the escort and security services provided by the multi-national naval forces stationed in that area.
18th SNEC Press Release – 19 March 2010 1
18th SNEC Press Release – 19 March 2010 2
6
The Committee noted that there is currently a proposal by the United States to ban the payment of ransoms for acts of piracy.
The Committee expressed great concern that in the absence of any effective efforts to stop piracy, a ban on ransom payments would have a very adverse effect on the crews being held hostage by pirates. Such a proposal will also place additional burdens on the families of the crew.
The Committee further urged each member Association to convey their concerns to their respective governments.
7
The Committee expressed grave concern that the National Hydrographic Office of India had, in early February 2010, issued a NAVAREA VIII warning for the arbitrary closure1 of, for all intents and purposes, the entirety of the Bay of Bengal to all flights and shipping activities on 7 and 9 February 2010. It is the Committee’s opinion that such very short notice and unilateral nature of the closure of the Bay of Bengal, a major shipping lane, is not in accordance with IMO regulations.
8
Whilst the Committee supports every effort to enhance maritime safety and the protection of our marine environment, the Committee is however worried that the Ballast Water Convention 2004 might enter into force very soon. Whilst there are a number of IMO-approved ballast water treatment systems available, these systems are not necessarily operationally effective for all types and sizes of ships. As ships not in compliance with the provisions of the Convention may be barred from a State party to the Convention once it enters into force, the lack of suitable systems for all types and sizes of ships might have serious repercussions on the industry.
Furthermore, the Committee also expressed concern that the installation of a ballast water treatment systems might have unintended consequences with regard to a vessel’s energy efficiency.
As such, the Committee hopes that States would take due consideration prior to ratification as a number of operational issues remain to be addressed.
9
The Committee noted with regret that adoption of the Copenhagen Accord at the 15th United Nations Climate Change Conference (COP15) last December provided little guidance with regard to international shipping.
The Committee recognises that the onus now lies with the International Maritime Organisation to take a pro-active role with regard to the development of a road map aimed at reducing Greenhouse Gas Emissions from ships so as to avoid the imposition of unilateral regulations by individual States.
1 Based on Indian newspapers reports, the closure of the Bay of Bengal was apparently for the test launch of India’s Agni III ballistic missile.
18th SNEC Press Release – 19 March 2010 3
In closing, the Committee reiterated that any measures adopted must meet IMO principles.
10
The members of the Committee expressed their appreciation to the SSA for hosting the 18th Interim Meeting of the SNEC in Singapore.
*****************
Editor’s note:
The Asian Shipowners’ Forum is a voluntary organization of the shipowner associations of Australia, China, Chinese Taipei, Hong Kong, India, Japan, Korea and the Federation of ASEAN Shipowners’ Associations comprising shipping associations of ASEAN countries. The aims of the ASF are to promote the interests of the Asian shipowning industries. Between annual ASF meetings, the ongoing work is carried out by the five Standing Committees; the Shipping Economics Review Committee, the Seafarers Committee, the Ship Recycling Committee, the Safe Navigation and Environment Committee, and the Ship Insurance and Liability Committee. It has been estimated that ASF owners and managers control and operate nearly 50% of the world’s cargo carrying fleet.
For any further questions, please contact:
Mr. Daniel Tan,
Secretary
ASF Safe Navigation & Environment Committee
Tel: (65) 62225238

The 22nd Interim Meeting of the ASF SERC was held in Tokyo on 2 March 2010. The meeting was attended by 19 representatives from the ASF member associations of ASEAN, China, Chinese Taipei, Hong Kong, India, Japan and Korea. The attendance list is attached.

1. World Economy
The SERC delegates shared the common view that the major developing economies, including China and India, have retained their strong economic growth, in contrast to the slow recovery from recession in developed countries, and will continue to be the main focus for the revival of the global economy. The delegates agreed that it was important for carriers to develop an accurate perception of the overall trade situation through better access to reliable trade information and understanding of macroeconomic trends in order to improve decision making and avoid misjudgements. Bearing this in mind, the meeting reaffirmed the importance for CEOs of Asian shipping companies to calmly consider the facts regarding the impact of the current global recession and lessons learned from this time as they review their business operations.

2. Dry Bulk and Tanker Shipping
1) It was recognised that the dry bulk market had made a remarkable recovery, following on from the historical low record of the Baltic Dry Index in December 2008, and currently remains firm, despite turbulent swings, mainly due to the constantly growing volumes of imports of iron ore and coal by China and India. The delegates noted that Chinese demand would drive the 2010 global seaborne trade in iron ore past 1 billion tonnes for the first time, and consequently the concern over the possible huge number of new buildings being delivered in 2010 could be mitigated.

2) As for the tanker sector, the market remained sluggish, regardless of vessel types and trades in 2009, partly due to the low demand for crude oil and petroleum products in developed countries and the slow retirement of single-hull tankers. It was recognised by some delegates that the market in 2010 would likely remain on a softening trend for the time being, in light of the high supply of new buildings.

3. Liner Shipping
1) All the delegates recognised that the entire container shipping industry remained in unprecedented difficulties and seemed to face a deficit of approximately US$20 billion in 2009. Under the current circumstances, the meeting recognised that it was critical for shipping companies to facilitate a constructive relationship with shippers to obtain their correct understanding on the severity of the current crisis and subsequent impacts.

2) In connection with the Intra-Asia trade, it was reported that the container cargo movement has maintained a year-on-year increase since September 2009, thanks to the upward trend of the Asian economy since 2nd Quarter of 2009, although the total volume in 2009 appeared to slightly trail 2008. Taking into account the expected further increase of cargo movement by the launch of the free trade agreement between China and ASEAN on 1st January 2010, the delegates shared the view that demand in the Intra-Asia trade as a whole would likely maintain a positive trend, but noted that the market was still fragile and could face volatility due to increased market entrants as a result of current low charter rates.

3) As for the US / Far East trade, the delegates noted that the supply and demand balance and general space utilisation were at a more favourable level since the end of 2009, as a result of the scale reduction of ship operations made in response to the sluggish US economy. Concern was also expressed that there still remained a huge capacity laid up globally at around 10% of the total container fleet, which could easily affect the brittle supply and demand balance in the trade, depending on the extent of any reintroduction of capacity.

4. Antitrust Immunity
With regard to the anti-trust immunity system for ocean carrier agreements, reports were made on the recent developments in countries and regions such as US, EU, India and China. Recognising the ASF’s long-standing stance that carrier agreements contribute to an improvement of service quality/efficiency and that anti-trust immunity system is absolutely indispensable for healthy development of the shipping industry as well as the whole trading industry, the delegates agreed to make continued efforts to seek the understanding of concerned parties such as governments and shippers for the necessity of the immunity system and important role of carrier’s agreements.

5. Environmental Issue
The meeting noted the latest developments on environment issues discussed at the IMO, which will have huge impacts on the operations of shipping companies. The members unanimously recognised that it was essential for the shipping industry, as part of its corporate social responsibility, to work together to address the reduction of gas emissions from ships. Anticipating that fuel oil prices will continue to increase, due not only to normal market forces, but also expected fuel-levies such as a low-sulphur surcharge, the delegates shared the common understanding of the need for developing new technologies for the improvement of fuel-efficiency. The members also took note that slow steaming was one effective mean to reduce emission and save fuel consumption. In reference to any implementation of slow steaming, shipping companies were encouraged to consult with shippers and make their utmost efforts to obtain shippers’ understanding.

6. Future Role of SERC
The Chairman proposed to review the future role of SERC from various standpoints and the delegates agreed to exchange their views in the next SERC meeting at the 19th ASF to be held in Hong Kong on 25 May 2010.

7. Other Issues

1) With regard to Panama Canal Tolls, the delegates express their grave concern over the increasingly high tolls. The meeting agreed to make a submission in the name of the ASF to the Panama Canal Authority seeking a more meaningful reduction of a longer duration in light of the protracted economic crisis faced by the world shipping industry.

2) The delegates also exchanged their views on recent topics surrounding the shipping industry, such as US and Asian regulatory developments, transportation security issues, and the WTO negotiations on maritime transport services.

* * *
The ASF Shipping Economics Review Committee (SERC) is a forum for senior executives of Asian shipping lines to review macroeconomic trade information and developments, as they relate to shipping and trade. The objective of the SERC is to improve the quality of executive decision-making by the review of available macroeconomic data and the sharing of perspectives on major trade and shipping policy issues.

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PRESS RELEASE

Asian Shipowners’ Forum welcomes India to membership.

At its 18th meeting, held today in Tainan, the Asian Shipowners’ Forum (ASF) welcomed the Indian National Shipowners Association as its latest member. There are now 8 members of the ASF, which are the shipowner associations of Australia (ASA), China (CSA), Chinese Taipei (NACS), Hong Kong (HKSOA), India (INSA), Japan (JSA), Korea (KSA) and the Federation of ASEAN Shipowner Associations (FASA), which comprises the shipowner associations of Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam.

The worldwide economic turmoil has contributed to the dramatic fall in shipping markets that has resulted in increasing difficulty in the employment of seafarers due to ships being withdrawn or laid up. The ASF recognises the benefit of maintaining employment, and therefore considered that employment conditions of seafarers should be consistent with the economic situation of the country or region where the seafarers are domiciled. Members of the ASF agreed to maintain as much as possible recruitment and training initiatives despite the present market conditions.

During its meeting, the ASF noted that on 30th April 2009 the Panama Canal Authority (ACP) had, in light of the current economic crisis, announced short-term reduction of charges. As the effective period of the reduction expires on 30th September, the ASF urged the ACP to institute a more meaningful reduction of a longer duration.

While expressing its strong appreciation to the United Nations and all Governments that have committed naval and air forces to the area, the ASF stated its continuing concern over the threat of piracy in the Gulf of Aden and surrounding seas. The potential trauma suffered by seafarers on ships that are hijacked, as well as their families ashore, is of deep concern to the ASF. The ASF urged all Asian shipowners to comply with the advisories issued by the relevant bodies, and to adopt the Best Management Practices issued by industry organizations.

The ASF considers that a long term solution to the problem may only be achieved by addressing the root cause of piracy in Somalia and by encouraging the formation of a ‘Malacca Strait’ style of multilateral cooperation amongst the littoral States.

The ASF agreed that measures to be adopted by the shipping industry should demonstrate effective and substantial reduction of total GHG emissions – this can only be achieved by improving the fuel efficiency of vessels through such energy efficient methods such as speed management and the development and adoption of technological methods. Instituting a ‘cap and trade’ mechanism may be complicated to apply in practice and could result in the suppression of shipping activities with the possible imposition of an unreasonable financial burden.

The ASF also discussed the criminalization of seafarers, and the liability of the seafarer presumably being determined by the seriousness of an accident rather than by any criminal culpability. This will, naturally, have a strong effect on the recruitment and retention of seafarers.

The ASF also discussed the outcome of the Diplomatic Conference on the Safe and Environmentally Sound Recycling of Ships, held 11th to 15th May in Hong Kong, and expressed its support for the early entry into force of the new Convention.

For more information, contact Mr. Wang Cheng, Secretary-General of the Asian Shipowners’ Forum, at Tel: +65 63254737 or E-mail: information@asf.com.sg.

~ends~

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Editor’s note:

The Asian Shipowners’ Forum is a voluntary organization of the shipowner associations of Australia, China, Chinese Taipei, Hong Kong, India, Japan, Korea and the Federation of ASEAN Shipowners’ Associations comprising shipping associations of ASEAN countries. The aims of the ASF are to promote the interests of the Asian shipowning industries. Between annual ASF meetings, the ongoing work is carried out by the five Standing Committees; the Shipping Economics Review Committee, the Seafarers Committee, the Ship Recycling Committee, the Safe Navigation and Environment Committee, and the Ship Insurance and Liability Committee. It has been estimated that ASF owners and managers control and operate nearly 50% of the world’s cargo carrying fleet.