㻌

21st JECKU TTop Execcutive Meeting
October 118, 2012, SanS Diego

Chaiirman’s NoteNThe 2
21st JECCKU Top Executivve Meeting was held in San Diego on
Octob
ber 18, 2012,2andd was aattended by repre
esentativees from major
shipbuuilders in Japan, Europe,EC
China, Koorea and the USA..

This yyear the meetingmwasw open
ned with the report of a gu
uest econ
nomiston thee world economy
ey. In traditional faashion, each of th
he deleggations
providded a report on shipbuild
ding in thheir resppective reegions. GlobalG
supplyy and dem
mand was discusssed as we
ell as indiividual brriefs on specificship ttype marrkets. Sh
hipbuildin g costs and env
vironmenttal issues andincrea
asingly sttrict regu
ulations w
were alsoo discussed. Lasstly, the CESS
Comm
mittee Cha
airman deelivered hhis reportt which coonsisted primarily
y of theactivities of reg
gulatory bodies.
bAll of the deleegations expresse
ed conceerns about the w
world ecoonomicery. Slow
w growth continues
cs, led primmarily by developiing econoomies,
recovebut future projections ofo growthh continu
ue to deccline. Thee debt crrisis inpe and th
he impactt of anticcipated fis
scal austterity on the part of theEuropUnited
d States were discussed as impe
ediments to curreent and future
growthh and thee source ofo risk forr the future economic recovvery.

Negattive trend
ds noted last yea r in the shipbuild
ding indusstry conttinued,
including an in
ncreasingg imbala nce betw
ween suppply and demandd, ande past year oversu
upply hass continue
ed to drivve ship
falling ship pricces. In thend while simultane
eously re
educing demand. TThe discu
ussionpricess down anof ship type sectors showed clearly that most secto
ors have been
mpacted byb this trrend. The
e delega
ates ackn
nowledge
ed thatsignificcantly imthese factors havehcrea
ated a cri sis in shipbuilding
g that is liikely to beb withdustry forr several years to come. Th
he delega
ates also acknowledged
the indthat aall related
d stakeholders inn the maaritime inndustries need too work
actively togethe
er to overcome th e crisis.
1

㻌The pparticipants ackno
owledged that thee current tough mmarket sittuation
will ca
all for an eveneclos
ser coord
dination withw the reelated ind
dustries anda forthe shhipbuilderrs to refle
ect a com
mmon voic
ce in the rule makking proc
cess atthe Innternation
nal Maritiime Orgaanizationn (IMO). The Ene
ergy Effic
ciencyDesign Index is being further im
mplemented with the partiicipation of theuilding industry to make th
he solutio
ons more practica l and effeective.
shipbuShipbuilding teechnolog
gies will be of corecimportance to the steadysopment ofo the eco-friende
dly marittime indu
ustry andd such closer
develocoordiination will
w servee to opeen the wayw
for introducttion of furtherfmeaniingful andd innovattive solutiions suchh as alternative fue
els like LNG.

While the deleegates acknowled
adged tha
at the crisis in th
he shipbu
uildingnd uncerrtain eco
onomic reecovery and aindusttry is linkked to a slow anmisma
atch bettween sh
hipbuildin
ng supplly and demand,, it wass also
recognnized tha
at the twinn challennges of environme
ental requuirementss, now
coming into efffect, and major chemmarkets providephanges in world energy
pportunityy for inno
ovation. T
The shipbbuilders have thee opportunity tothe ophelp rrevive their markkets by w
working togethertwith the relatedralong windusttries on innternation
nal regul atory issues and by provid
ding inno
ovativeproduccts to thee market.

The JJapanesee shipbuilders wil l host th
he 22nd JECKU Top Exe
ecutive
Meetinng in 201
13. The delegate s agreed
d to meet in Noveember 20013 inOkinaw
wa, Japa
an.

-End-2