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

10 March 2017, Fukuoka

MEETING SUMMARY
of
29th Interim Meeting of Asian Shipowners’ Association (ASA)
Shipping Economics Review Committee (SERC)
29th Interim Meeting of ASA SERC was held in Fukuoka, Japan 10 March 2017. Meeting wasattended by 21 delegates from ASA member associations of ASEAN, China, Chinese Taipei,Hong Kong, Japan and Korea per attendance list attached. ASA SERC members were firmly
committed to ensure full compliance with all applicable competition laws throughout the entire
programme under careful observation of their counsel, as in previous meetings. Outline of themeeting is as follows:
1. World Economy
U.S. economy will slightly pick up this year, considering that manufacturing and investment will
gain traction after a weak 2016. On the other hand, there is concern about how future economic
policy and other policy initiatives under the Trump administration might affect not only the U.S.
economy but also the global economy. With regard to EU, there is a projection that growth in Euro
area in 2017 will continue at a lower level, primarily because of political uncertainties such as both
unpredictable Brexit process and upcoming elections in some major EU countries that could
continue to slow economic momentum. Concerning situation in Asia this year, China’s growth isexpected to be moderate in consideration of not only effect of on-going economic rebalancing but
also soft external demand and slower private investment. On the other hand, growth in emerging
Asian economies is projected to remain broadly stable, especially in India. Overall, it seems theglobal economy will continue its moderate growth, but this could be undermined by various
political uncertainties such as new U.S. administration and Brexit.
2. Shipping Markets
Mr Turloch Mooney, Senior Editor of IHS Maritime & Trade, gave presentations on current
situation and forecasts for shipping markets such as U.S. Trans-Pacific and Intra-Asia liner
markets, also dry bulk/tanker markets. Attendees noted outlook that shipping companies would
be still stuck in continuous sluggish markets in most sectors in 2017, but that there were somepositive signs for improving markets in the future such as indications of a gradually narrowing gap
between supply and demand.
3. Major Challenges Facing Shipping Industry
1) Global Sulphur Cap for Marine Fuel Oil
There are concerns arising from implementation of IMO regulation for ships to use fuel oil withsulphur content of no more than 0.5% from January 2020, such as future availability of sufficient-1-quantities of compliant fuel oil and price. Mr Taro Shimizu, JX Nippon Research Institute, provided
attendees with his analysis on possible options for refining industry to cope with regulation andoutlook for supply/demand of compliant fuel oil. Attendees agreed to the importance of ensuring
supply system for sufficient quantities of compliant marine fuel oil in order for carriers to comply
with new regulation and avoid disrupting movement of international cargo flow.
2) Bribery
Delegates were updated on recent trends in corrupt practices affecting the maritime industry,based on information kindly provided by Maritime Anti-Corruption Network (MACN) that isconducting activities for eliminating corrupt practices impacting the industry. It was reiterated thatbribery, facilitation payments and other forms of corruption had been long-standing, rooted
obstacles to fair trade for shipping companies, and attendees therefore agreed to continuously
address this important task in collaboration with interested parties such as MACN.
3) Canal Issue
Recent Suez and Panama Canal developments were reported. Delegates reaffirmed importanceof establishing earliest possible regular dialogue mechanism between Canal Authorities andCanal users in order to ensure safe transit environment and prevent recurrence of excessive andshort-notice Canal toll increases in a non-transparent manner. It was therefore agreed that ASA
should continue its efforts, in collaboration with international shipping organisations, towards early
establishment of a dialogue mechanism.
4) Level Playing Field
Attendees were informed by Mr Simon Bennett of ICS of recent developments in international
shipping policy such as negotiations on bilateral-multilateral free trade agreements, those leading
to expansion of maritime transportation demand, major issues for a level playing field in shipping
such as discriminatory taxation on foreign carriers and risk of introduction of a cargo reservation
scheme in some countries. Attendees reaffirmed support for further expanding free trade
agreements globally and agreed that ASA, in collaboration with other shipping organisations suchas ICS, should continue its efforts to ensure an environment for fair competition in global shipping
markets.
4. Anti-trust Immunity and Shipping Regulation
Recent developments in a number of jurisdictions were reported. Attendees reconfirmed ASA’s
long-standing policy that anti-trust immunity system for cooperative carrier shipping agreements(e.g., vessel sharing agreements, voluntary discussion agreements) is indispensable for healthy
development of the liner shipping industry and the maintenance of reliable service to the entire
trading industry. The unfortunate demise of Hanjin Shipping, with adverse effects on themovement of cargoes and vessel and port operations globally, is an important reminder about theneed for these cooperative mechanisms to mitigate the effects of today’s ultra-competitive
shipping markets. ASA SERC commended ASA for its active support of industry efforts tomaintain anti-trust exemptions for liner shipping agreements and urged continued activity in thisregard.
The members also discussed how best to ensure continued input and support from all concerned
liner companies on Asian competition law and similar policy developments of importance to theliner industry. This will be considered at the next SERC meeting.
***
The ASA Shipping Economics Review Committee (SERC) is a forum for senior executives of Asian shipping lines to review macroeconomic trade information,
major trade developments, and regulatory policies as they relate to shipping and trade. The objective of the ASA 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.
-2-ASA SERCASA 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

10 March 2017
The 29th Interim Meeting of
the ASA Shipping Economics Review Committee (SERC)
in Fukuoka on 10 March 2017

Attendance List
CHAIRMAN< Japanese Shipowners’ Association >Mr Eizo Murakami

Vice President, Japanese Shipowners’ Association(President and CEO, Kawasaki Kisen Kaisha., Ltd.)MEMBERS< China Shipowners’ Association >Mr Ye Weilong
Mr Dong Lei
Mr Tan Bing

(Executive Vice President,
China COSCO Shipping Corporation Limited)(Office of BoD &Executive Division Manager,
China COSCO Shipping Corporation Limited)(President, COSCO Shipping (Japan) Co., Ltd.)< Federation of ASEAN Shipowners’ Association >< Indonesian National Shipowners’ Association >Mr Erick Limin
Mr Budhi Halim(Special Vessel Division,Indonesian National Shipowners’ Association)(General Secretary,Indonesian National Shipowners’ Association)< Malaysia Shipowners’ Association>

Mr Nordin Mat Yusoff(Technical Advisor, MISC Berhad)< Vietnam Shipowners’ Association>

Mr Bui Viet Hoai
Mr Do Hung Duong(Vice CEO, Vietnam National Shipping Lines)(Acting Vice Director, Vietnam National Shipping Lines)< Hong Kong Shipowners Association >Mr Erxin Yao(Director, Corporate Planning & Corporate Administration,
Orient Overseas Container Line Ltd.)-3-

< Japanese Shipowners’ Association >Mr Akihiko Ono
Mr Tsuyoshi Aoki
Mr Hiroki Harada
Ms Keiko Kosugi
Mr Keiji Tomoda(Managing Executive Officer, Mistui O.S.K. Lines, Ltd.)(Associate General Manager, Corporate Planning Division,Mistui O.S.K. Lines, Ltd.)(Corporate Officer, Nippon Yusen Kabushiki Kaisha)(Deputy General Manager, Corporate Planning Group,Nippon Yusen Kabushiki Kaisha)(Associate Director, Kawasaki Kisen Kaisha, Ltd.)< Korea Shipowners’ Association >Mr Jeongbum Kim
Mr Chuljung Lee
Mr Hoseong Kim(Executive Vice President,
Hyundai Merchant Marine Co., Ltd.)(General Manager, Korea Shipowners’ Association)(Deputy General Manager, Korea Shipowners Association)< National Association of Chinese Shipowners >Mr Randy Chen
Mr Prince Wang
Capt. Patrick Lin
GUEST SPEAKER
Mr. Turloch Mooney
Mr. Taro Shimizu
ICS SECRETARY
Mr Simon Bennett(Vice-Chairman, Wan Hai Lines Ltd.)(President, Yangming (Japan) Co. Ltd.)(Executive Vice President, Evergreen Marine Corporation)(Senior Editor, IHS Maritime & Trade, IHS Markirt.)(Resercher, JX Research)(Director Policy and External Relations,International Chamber of Shipping)

ASA SECRETARY
Mr Kwang Ho Shin

(Secretary General, Asian Shipowners’ Association)

LEGAL COUNSELMr Jeffrey F Lawrence(Cozen O’Connor)

SECRETARIATMr Takashi Ishikawa
Mr Kengo Nakamura
Ms Erika Akiyama(Managing Director, Japanese Shipowners' Association)(Manager, Planning Division,Japanese Shipowners’ Association)(Planning Division, Japanese Shipowners' Association)-------------------------4-