Asian owners back anti-trust immunity

Asian shipowners say the anti-trust immunity granted to various ocean carriers in the US should be seen not as a tool only to benefit international shipping, but the whole 'trading industry' and world economy.

This is the point the Asian Shipowners Forum (ASF) wants its members to point out to their respective governments as well as to shippers councils, in an apparent attempt to establish a correct interpretation and recognition of the anti-trust immunity system, which is under review in the US.

Meeting in Manila last week, the ASF Stabilization of Trade Committee also recognized that the anti-trust agreement is a necessary element in carriers' endeavors towards cost rationalization and service enhancement. It said the agreement will also ensure a stable freight market and prevent its large fluctuations that disturb shippers.

Confirming the importance of discussion in the World Trade Organization to achieve liberalization of trade and services, it was agreed that a cohesive approach of the ASF should be pursued to attain success in the negotiation on shipping.

The ASF STC also recognized that all shipowners have been suffering from the depressed market since the Asian economic crisis in 1997 and stressed that shipowners especially in dry bulk and tanker sector should make effort to regain 'orderly market condition."

The ASF STC is currently chaired by Masaharu Ikuta, president of Japanese Shipowners' Association. The ASF seeks to develop consensus on policy issues and promote better business policies among the diverse Asian shipowners' groups.

The Stabilization of Trade Committee (STC) focused primarily on the overall economics of shipping through the exchange and review of macroeconomic data and trends. It thus largely functions as a medium for mutual education by promoting member-decision making based on full understanding of such information.

One of the encouraging signs recognized by the delegates is the remarkable increase in the number of old and substandard vessels that have been scrapped i the last two to three years.

"It (scrapping) will not only insure a fair cost competition among shipowners but will also contribute towards the prevention of marine casualty which would sometimes cause to the ocean environment," the ASF noted.

The ASF delegates also exchanged views with great anxiety on the problem of piracy and stowaways on ships.

Noting the recent incident involvingAlondra Rainbow, in which well organized pirates hijacked the ship, robbed the cargo of aluminum ingots and endangered the lives of 17 crewmembers.

They recognized that each shipping line should well prepare preventive measures on each vessel and exercise decent training of crews to make a prompt report to authorities once such incidents happened.