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

4 March 2016, Kobe

MEETING SUMMARYofthe 28th Interim Meeting of the Asian Shipowners’ Forum (ASF)
Shipping Economics Review Committee (SERC)
The 28th Interim Meeting of the ASF SERC was held in Kobe, Japan on 4 March 2016. The
meeting was attended by 17 delegates from the ASF member associations of ASEAN, Chinese
Taipei, Hong Kong, Japan and Korea. The attendance list is attached. The ASF SERC members
were firmly committed to ensure full compliance with all applicable competition laws throughout
the entire programme under the careful observation of their counsel, as in previous meetings.
The outline of the meeting was as follows:
1. World Economy
The U.S. economy is expected to continue to be robust, supported by still-easy financial
conditions and strengthening housing and labour markets. However, there are also challenges
stemming from the strength of the dollar, which is causing the U.S. manufacturing sector to shrink
marginally. In the Euro area, there are projections that it will grow to some degree this year
because of stronger private consumption, supported by lower oil prices and easier financial
conditions. Concerning the situation in Asia, China is expected to continue rebalancing its
economy from manufacturing to services, but India and other emerging Asian economies areprojected to continue growing at a robust pace, although some countries could face struggling
situations brought about by China’s economic rebalancing and global manufacturing weakness.
In addition, we have to keep a careful watch on the depressed oil price levels in consideration ofits impact on the global economy. Overall, the global economy still faces uncertain factors in thecourse of returning to the right track for steady growth.
2. Shipping Markets
Mr Rahul Kapoor, Director of Drewry Financial Research Services, gave the meeting
presentations on the current situations and forecasts for shipping markets such as the U.S.
Trans-Pacific and Intra-Asia liner market, and the dry bulk/tanker markets. The meeting noted theoutlook that shipping companies would be continuously forced to struggle with sluggish markets
in most sectors in 2016, mainly due to a deep-rooted oversupply of tonnage coupled withuncertain factors relating to the global economy.
3. Major Challenges Facing Shipping Industry
1) Environmental Regulations
An update on developments regarding environmental regulations in international and regional-1-governmental fora was provided. Mr Seijiro Morimoto from the JMC who addressed this subject
indicated that further environmental regulations might encourage the demolition of older vessels,leading to an improvement in the oversupply situation, but that at the same time, furtherenvironmental regulations might place inappropriate burdens on shipping companies. Becauseof the significant costs and operational impacts of environmental regulations, it was agreed that
the ASF should continue to collaborate with international shipping organisations to encourage
governments to make appropriate decisions on environmental regulations at the IMO and otherfora in order not to impose unfair burdens on the shipping industry.
2) Bribery
The delegates were informed of legal framework and governmental/industrial efforts foranti-bribery as well as key points for anti-bribery compliance. It was recognised that bribery,facilitation payments and other forms of corruption are long-standing, rooted obstacles to fairtrade for shipping companies. The ASF SERC therefore decided to add this issue to its future
agenda and to address continuously this important task. The members were also encouraged toconsider joining the Maritime Anti-Corruption Network (MACN).
3) Protectionist Approach in Some Countries
The meeting was informed by Mr Simon Bennett of ICS of the recent developments in the U.S.,
Russia, Africa and EU concerning the promotion of utilising nationally flagged vessels ininternational trade, which could damage free trade in international shipping markets. The meeting
agreed that the ASF, in collaboration with international shipping organisations such as ICS,
should continue to urge such countries and regions to refrain from taking this kind of protectionist
approach on nationally flagged ships.
4) 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 ofexcessive and short-notice 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, incollaboration with international shipping organisations, towards the early establishment of the
dialogue mechanism.
4. Antitrust Immunity and Shipping Regulation
Recent developments in a number of jurisdictions were reported. The meeting reconfirmed theASF’s long-standing policy that the anti-trust immunity system for cooperative shippingagreements is indispensable for the healthy development of the shipping industry and the whole
trading industry. The ASF SERC commended ASF for active support of industry efforts tomaintain anti-trust exemptions for liner shipping.
***The ASF Shipping Economics Review Committee (SERC) is a forum for senior executives of Asian shipping lines toreview macroeconomic trade information and developments as they relate to shipping and trade. The objective of the ASF
SERC is to improve the quality of executive decision-making by the review of available macroeconomic data and thesharing of perspectives on major trade and shipping policy issues.
-------------------------------------------2-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

4 March 2016
The 28th Interim Meeting ofthe ASF Shipping Economics Review Committee (SERC)
in Kobe on 4 March 2016

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

Vice President, Japanese Shipowners’ Association(President and CEO, Kawasaki Kisen Kaisha., Ltd.)MEMBERS< Federation of ASEAN Shipowners’ Association >< Indonesian National Shipowners’ Association >Mr Bani M. Mulia(Managing Director, Samudera Indonesia)
Mr Haneco W. Lauwenzi (President Director, Pt. Andalas Bahtera Baruna)
Mr Eldwen Laurenzi(Manager, Pt. Andalas Bahtera Baruna)< Malaysia Shipowners’ Association>

Capt. Johari Mohd Noh (Managing Director, Gagasan Carriers Sdn Bhd.)< Vietnam Shipowners’ Association >Mr Bui Viet Hoai
Mr Do Hung Duong(Vice President, Vietnam National Shipping Lines)(Director, Vietnam National Shipping Lines)< Hong Kong Shipowners Association >Mr Erxin Yao(Director, Corporate Planning & Corporate Administration,
Orient Overseas Container Line Ltd.)< Japanese Shipowners’ Association >Mr Akihiko Ono
Mr Katsuhide Shiratsu
Mr Hiroki Harada
Ms Keiko Kosugi
Mr Keiji Tomoda(Managing Executive Officer, Mistui O.S.K. Lines, Ltd.)(Associate General Manager, Corporate Planning Group,Mistui O.S.K. Lines, Ltd.)(Corporate Officer, Nippon Yusen Kabushiki Kaisha)(Deputy General Manager, Corporate Planning Group,
Nippon Yusen Kabushiki Kaisha)(Associate Director Maritime Industry Affairs,Kawasaki Kisen Kaisha, Ltd.)-1-< Korea Shipowners’ Association >Mr Jeong Bum Kim(Executive Vice President, Hyundai Merchant Marine Co., Ltd.)< National Association of Chinese Shipowners >Dr Frank F. H. Lu
Mr C. K. Ong
Mr Randy Chen

(Chairman, Yang Ming Marine Transport Corporation)(President, U-Ming Marine Transport Corporation)(Vice-Chairman, Wan Hai Lines Ltd.)GUEST SPEAKER
Mr Rahul Kapoor
Mr Seijiro Morimoto(Director, Drewry Maritime Services (Asia) Pte. Ltd.)(Resercher, Japan Maritime Center)ICS SECRETARY
Mr Simon Bennett(Director Policy and External Relations, International Chamber of Shipping)

ASF SECRETARY
Mr Kwang Ho Shin
Ms Serena Tan(Secretary General, Asian Shipowners’ Forum)(Executive Officer, Asian Shipowners’ Forum)

LEGAL COUNSELMr Jeffrey F Lawrence(Cozen O’Connor)

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