ASF SERCASF Shipping Economics Review Committee
c/o Japanese Shipowners’ Association
Kaiun-Building, 6-4 Hirakawa-cho 2-chome
Chiyoda-ku Tokyo Japan 102-8603
E-mail : int@jsanet.or.jp
Tel:+81-3-3264-7180 Fax:+81-3-5226-9166

11 March 2015, Kuala Lumpur

NOTE OF UNDERSTANDING
adoptedat the 27th Interim Meeting of the Asian Shipowners’ Forum (ASF)
Shipping Economics Review Committee (SERC)

The 27th Interim Meeting of the ASF SERC was held in Kuala Lumpur, Malaysia on 11March 2015. The meeting was attended by delegates from the ASF member
associations of ASEAN, China, Chinese Taipei, Hong Kong, Japan and Korea. The
attendance list is attached. The SERC members were firmly committed to ensure fullcompliance with all applicable competition laws throughout the entire programme under
the careful observation of their counsel, as in previous meetings. The delegatesexchanged the following information and opinions.
1. World Economy
The recovery in the U.S. has remained steady, supported by a highly accommodative
monetary policy coupled with improvement in the unemployment ratio and consumer
sentiment. It was expected that this upward economic trend would be maintained in2015. In Europe, the UK and Germany have demonstrated steady growth in 2014, whilst
some other EU countries have been suffering from a dull economy on account of weak
investment and low inflation. It was hoped that low oil prices would continue to stimulate
the European economy in 2015, but there was concern that high unemployment andpolitical uncertainty in some countries might dampen the recovery. The situation in Asia,
steady growth has been maintained and China remains in the heart of Asian economic
growth although it is gradually moving from a high-growth era to medium-growth. India
and the ASEAN countries will also maintain steady growth, supported by improved export
momentum in line with rising demand from the U.S. Overall, the meeting shared thegeneral view that the global economy would maintain its trend towards moderate growthin 2015. In addition, the global economy will benefit if oil prices stay at a lower level.

2. Dry Bulk and Tanker Shipping1) Dry Bulk
The meeting recognised that the struggle had continued in the dry bulk market since 2011
and that market conditions remained challenging for all sized vessels in 2014 due to thesupply and demand imbalance, even though the demand for dry bulk cargo has been
-12-1_英語HP用_FINALNOU27thSERC.doc

growing steadily in general. It was anticipated that although the over-tonnage situation
would still continue in 2015, in the near future, the supply-demand situation in the dry bulk
market would be gradually balanced, in consideration of the following prospects:- new building rush was over, fleet expansion peaks out,
- a reduced number of order books and a normal rate of demolition will keep fleet growthmoderate,- the demand will continue to be robust, mainly supported by the constant global
economic growth.
2) Tanker
The meeting noted that the tanker market, especially crude oil tanker, had beenfavourable from the late autumn of 2014 due to the fall in oil prices coupled with anincrease in oil demand in the winter season, and it gains an improved supply/demandbalance. It is anticipated that this favourable trend would be likely to remain in 2015,
supported by low oil prices. However, the delegates shared some concerns on theuncertainty of future crude oil demand and unexpected new orders in the next few years.
3. Liner Shipping
The delegates exchanged their views on macroeconomic trends in the U.S. trans-Pacificand intra-Asia trades.
With regard to the U.S. trans-Pacific trade, the meeting recognised that demand wasincreasing steadily, thanks to the favourable economy in the U.S., and the market
condition remained comparatively firm. Although it seems that this favourable trend
would continue in 2015, the delegates shared the concern that a possible deployment of alarger capacity cascaded from other trade might impact shipping market conditions. The
delegates renewed their view that it is important for the Asian shipping companies to takeindependent rational economic actions for ensuring a sustainable business environment.
Concerning this trade, it was noted that the FMC has been tackling the problem ofpersistent congestion in the U.S. ports, especially on the West Coast, as its top priority
issue in 2015. In this connection, the delegates appreciated the U.S. government’sefforts to mediate the prolonged labour disagreement between the ILWU and PMA, which
has seriously impeded smooth cargo flows to/from the U.S. West Coast ports. It was
hoped that the port situations will return to normal in the near future.
Turning to the intra-Asia trade, it was noted that the container cargo volume continued togrow steadily due to the constant economic growth in Asia, especially China, Indonesiaand Singapore. On the other hand, the delegates shared their deep concern overpersistent port congestion, especially in Manila, Ho Chi Minh, Hong Kong and Singapore,
which has been a serious obstacle to smooth and effective intra-Asia trade. The meeting
paid special attention to the possible impact on the market conditions of the trade causedby redeployed larger vessels cascading from other trades and lower fuel prices resulting
in further competition with increased services.

-22-1_英語HP用_FINALNOU27thSERC.doc

4. Antitrust Immunity
Recent developments in a number of jurisdictions were reported. The meetingreconfirmed the ASF’s long-standing policy that the anti-trust immunity system for all
types of cooperative shipping agreements was absolutely indispensable for the healthy
development of the shipping industry and the whole trading industry.
5. Other Issues
1) Canal Issue
The recent developments in the Suez and Panama Canal were reported. The delegates
reaffirmed the importance of establishing the regular dialogue mechanism between those
Canal Authorities and Canal users at the earliest opportunity in order to prevent a
recurrence of unilateral, sudden and irrational Canal toll increases in a non-transparent
manner and to ensure a safe transit environment. Therefore, it was agreed that the ASF
should continue its utmost efforts, in collaboration with international shipping
organisations such as ICS, towards the early establishment of the dialogue mechanism.
2) US LNG Exports
The recent developments in the U.S. Congress concerning the promotion of utilising U.S.
flag LNG ships for the export of LNG from the U.S. were reported. It was agreed that theASF, in collaboration with international shipping organisations such as ICS, should
continue to urge the U.S. government to refrain from taking this kind of protectionist
approach on U.S. flag ships.
3) EU Regulation on CO2 Reporting
It was noted that the EU recently adopted a unilateral and regional regulation on thereporting of ships’ CO2 emissions, which might be a step for establishing some kind of
financially penalising scheme for ships’ CO2 emissions in EU. In response, the delegates
renewed their belief that any regulation on air emissions from ships should be pursued
through the IMO, which is the sole international platform to be able to comprehensively
and appropriately address this issue. In this connection, the delegates expressed its
serious concern that the UNFCCC still maintained the idea to force the international
shipping and aviation industry to provide a huge financial support for the Green Climate
Fund.
*

*

*

The ASF Shipping Economics Review Committee (SERC) is a forum for senior
executives of Asian shipping lines to review macroeconomic trade information anddevelopments, as they relate to shipping and trade. The objective of the SERC is toimprove 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.
-------------------------------------------32-1_英語HP用_FINALNOU27thSERC.doc

ASF SERCASF Shipping Economics Review Committee
c/o Japanese Shipowners' Association
Kaiun-Building, 6-4 Hirakawa-cho 2-chome
Chiyoda-ku Tokyo Japan 102-8603
Tel:+81-3-3264-7180 Fax:+81-3-5226-9166
E-mail :int@jsanet.or.jp

11 March 2015
The 27th Interim Meeting of
the ASF Shipping Economics Review Committee (SERC)
in Kuala Lumpur on 11 March 2015

Attendance List
CHAIRMAN< Japanese Shipowners’ Association >Mr Yasumi Kudo

Vice President, Japanese Shipowners’ Association(President, Nippon Yusen Kabushiki Kaisha)

VICE CHAIRMAN< Korea Shipowners’ Association >Mr Seock Dong Lee(CEO, Hyundai Merchant Marine Co., Ltd.)MEMBERS< China Shipowners’ Association >Mr Shen Yiping
Mr Henry Tian

(Vice President, China Shipping Regional Holdings Pte LTD.)(General Manager, COSCO Container Lines Malaysia Co Ltd.)< Federation of ASEAN Shipowners’ Association >< Indonesian National Shipowners’ Association >Mr Bani M. Mulia(Managing Director, Samudera Indonesia)< Malaysia Shipowners’ Association>

Capt. Johari Mohd Noh (Managing Director, Gagasan Carriers Sdn Bhd.)
Mr Faizul Ismail(Vice President, LNG, MISC Bhd.)
Mr Son Yong Loo(Managing Director, Lunar Shipping Sdn Bhd.)
Mr James Ong(Director of Commercial and Operation, Perkapalan Dai Zhun Sdn Bhd.)< Thai Shipowners’ Association>

Mr Sumate Tanthuwanit (Managing Director, Ngow Hock Co Ltd.)Mr Bhumindr Harinsuit (Managing Director, Harinsuit Transport Co Ltd.)< Vietnam Shipowners’ Association >Mr Bui Viet Hoai

(Deputy General Director, Vietnam National Shipping Lines)-1-

< Hong Kong Shipowners Association >Mr Andy Tung

(CEO, Orient Overseas Container Line Ltd.)< Japanese Shipowners’ Association >Mr Takafumi Kido
Mr Toshiyuki Sonobe
Mr Ryuji Iwasa
Mr Hiroyuki Kitagaki
Mr Hiroki Harada
Mr Ryoichi Oda
Mr Hiroyuki Noma

(Executive Officer, Kawasaki Kisen Kaisha, Ltd.)(Executive Officer, Mistui O.S.K. Lines, Ltd.)(Manager, Research Office, Mistui O.S.K. Lines, Ltd.)(General Manager, Mistui O.S.K. Bulk Shipping (Asia Oceania)Pte Ltd.)(Corporate Officer, Nippon Yusen Kabushiki Kaisha)(Deputy General Manager, Corporate Planning Division,Nippon Yusen Kabushiki Kaisha)(Executive Secretary to the President,Nippon Yusen Kabushiki Kaisha)< Korea Shipowners’ Association >Mr Cheong Hee Ha(Senior Vice President, Hyundai Merchant Marine Co., Ltd.)< National Association of Chinese Shipowners >Mr C K Ong
Mr Randy Chen

(President, U-Ming Marine Transport Corporation)(Director, Wan Hai Lines Ltd.)GUEST SPEAKER
Dr. Ervina Alfan
Dr. Mohd Zulkhairi(Senior Lecturer, University of Malaya)(Lecturer, University of Malaya)

ICS SECRETARY
Mr Simon Bennett(Director Policy and External Relations, International Chamber of Shipping)

ASF SECRETARY
Mr Kwang Ho Shin

(Secretary General, Asian Shipowners’ Forum)

LEGAL COUNSELMr Jeffrey F Lawrence(Cozen O’Connor)

SECRETARIATMr Takashi Ishikawa
Mr Kengo Nakamura
Mr Takuya Horaguchi(General Manager, Japanese Shipowners' Association)(Manager, Planning Division, Japanese Shipowners’ Association)(Planning Division, Japanese Shipowners' Association)-------------------------2-