ASA SPC
ASA Shipping Policy 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

15 March 2018, Tokyo

MEETING SUMMARY
ofthe 30th Interim Meeting of the Asian Shipowners’ Association (ASA)
Shipping Policy Committee (SPC)
The 30th Interim Meeting of ASA SPC was held in Tokyo, Japan on 15 March 2018. The meeting
was attended by 15 delegates from ASA member associations of ASEAN, Chinese Taipei, HongKong, Japan and Korea, as per the attendance list attached. ASA SPC members were firmly
committed to ensuring full compliance with all applicable competition laws throughout the entire
programme under careful guidance from their counsel, as in previous meetings. The outline of themeeting is as follows:
1. Name and Activities of the Meeting
Delegates noted that the name of the Committee had changed from the Shipping Economics
Review Committee (SERC) to the Shipping Policy Committee (SPC) in order to more accuratelyreflect the nature of its activities, in accordance with the ASA Chairmen meeting’s decision taken
in November 2017. Delegates also confirmed the Chairmen meeting’s conclusion that theCommittee would continue to focus on Regulation, Taxation, Trade Policy, Customs, Canals,Infrastructure, the Macro Economy and Policy Public Relations in order to ensure the Committee
remains compliant with applicable legal requirements.
2. Developments of International Maritime Policy
Mr Simon Bennett, Deputy Secretary General of ICS, gave a presentation on broad issues
regarding maritime policy such as the recent US President’s tariff order and its international
repercussions, multilateral trade deals, shipbuilding subsidies and the environmental rules toregulate the emissions of SOx and CO2. Attendees recognised the importance of Asianshipowners supporting further environmental improvement in the interests of sustainable
development. Participants also shared the view that reducing CO2 from shipping was a global
problem which could only be addressed successfully at a global level by the IMO rather than byunilateral or regional action.
3. Protectionist Measures in the World
Delegates were concerned about recent developments in some major jurisdictions, including theUS, Indonesia and potentially also Russia, against long-standing international practices and-1-maritime free trade principles. It was agreed that the Committee should continue monitoring theUS bill stipulating that a certain percentage of LNG and crude oil exports should be transported on
US flag vessels to grow the US tanker fleet and US seafarers. The Indonesian new cargo
reservation rule on exports of coal/crude palm oil and imports of rice etc, requiring such cargo to
be principally transported by Indonesian national companies, was also discussed, based on thedraft ASA SPC Position Paper (attached), as the rule may have serious practical ramifications on
the trade to/from Indonesia. Many participants emphasised the importance for international
shipping industry to keep the principle of free trade and supported the Position Paper as a basis of
the future ASA Letter to the Indonesian Government, while FASA-Indonesia suggested there
were some misunderstandings among international societies concerning the rule. After thediscussion, the Position Paper was adopted to be published together with the Summary Record.
It was also recommended that each member association communicate with its own government
regarding the benefit of free trade, utilising the Position Paper.
4. Canal Issues
Mr Takuma Matsuda, Researcher of the Japan Maritime Center, gave an informative presentation
concerning the impact of the Panama Canal expansion. Attendees noted the benefits of theexpanded Panama Canal, especially in LNG trade from the US Gulf to Asian countries, while toll
appreciation and congestion risks may affect the cost advantages of US LNG. It was also
reported that the 1st Dialogue Meeting with the Panama Canal Authority was successfully held inNovember 2017, which the Secretary General of ASA attended along with JSA delegates.
Delegates reaffirmed the importance of regular dialogue between Canal Authorities and Canalusers in order to ensure a safe transit environment and prevent the recurrence of excessive andshort-notice Canal toll increases.
5. Anti-trust Immunity and Shipping Regulation
Recent developments in a number of jurisdictions were reported by Mr Bennett and Mr Robert
Magovern, Attorney of Cozen O’Connor and the SPC’s legal counsel. Attendees expressed their
special attention and concern about the review by European Commission concerning the block
exemption for consortium/alliances which enables highly efficient global shipping services byparticipating carriers. Attendees reconfirmed ASA’s long-standing policy that the anti-trust
immunity system for cooperative carrier shipping agreements is indispensable for the healthy
development of the liner shipping industry and the maintenance of a reliable service to the entire
trading community. The Committee commended ASA for its active support of industry efforts tomaintain anti-trust exemptions for liner shipping agreements and urged continued activity in thisregard.
6. Anti-Corruption Issue
Attendees recognised that bribery and other forms of corruption had been obstacles to fair tradefor shipping companies and agreed to continuously monitor the related developments at thisCommittee and to address this important task in collaboration with interested parties such asMaritime Anti-Corruption Network (MACN).
***
The ASA Shipping Policy Committee (SPC) is a forum for the members of ASA associations to discuss maritime policy issues such as regulation, taxation, trade
policy, customs, canals, infrastructure and the macro economy, and policy public relations.
-2-ASA SPC
ASA Shipping Policy Committee
c/o Japanese Shipowners’ AssociationKaiun-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

15 March 2018, Tokyo

Position Paper
Indonesian New Cargo Reservation Ruleon

Export of Coal and Crude Palm Oil (CPO) andImport of Rice and Goods for Government Procurement(Regulation of the Minister of Trade of the Republic of Indonesia Number 82 of 2017)
The ASA SPC considers this Ministerial Decree as a new protectionist measure which affects
international maritime trade and the competitive edge of Indonesian industry, especially in thecoal/CPO industry, which currently retains the lion’s share in the world.
The outline of Regulation No 82 of 2017 can be summarised as follows:- Exporters who export coal and/or CPO must utilise Indonesian carriers and insurers. (Art 3&4)
- Importers who import rice and goods for government procurement must utilise Indonesian carriers
and insurers (Art 3&4)
- When the availability of maritime transport/insurance by Indonesian carriers/insurers is still limited
or unavailable, exporters and importers may also utilise foreign carriers/insurers. (Art 5)- Exporters and importers must submit a monthly report to the authority in the stipulated form.
(Art 6&7)- Exporters and importers who violate this regulation are subject to administrative sanctions in theform of a suspension or revocation of their license. (Art 9)- Technical guidelines for the implementation of this regulation may be determined. (Art 12)
We are assured that this Decree, a discriminatory cargo reservation, would be contrary to
long-standing international practice and maritime free trade principles. It may also breachinternational agreements which Indonesia is a member of such as the obligations under the General
Agreement on Trade in Service (GATS).
The introduction of a measure such as Article 3 in the regulation will lead to unfair competition andmarket distortion, an uneven playing field and potentially deter international shipping companies frominvesting in business in Indonesia. Thereby, there is a grave and imminent risk that this Ministerial
Decree would affect both the international shipping markets and the Indonesian economy, despite theDecree’s objective: the promotion of Indonesian trade and industry.
We are also concerned that as Indonesia is a one of the leading countries in Asia with a population of
more than 250 million, such a protectionist measure could be emulated in other countries or some-3-

countries affected by the Decree may adopt a retaliatory measure which restricts the shipment ofcertain export cargoes to their domestic shipping companies. We never want such a futile situation,
which would ultimately disrupt efficient, reliable and reasonable world trade.
The ASA SPC firmly believes that the international seaborne exportation and importation of any goods
and products to and from any country should be based on the principle of free and fair market
competitive conditions, and thus strongly hopes that the Government of Indonesia will deliberate on
our suggestions and reconsider the implementation of this Ministerial Decree.

The ASA Shipping Policy Committee (SPC) is a forum for the members of ASA associations to discuss maritime policy issues such as regulation, taxation, trade
policy, customs, canals, infrastructure and the macro economy and policy public relations.

-4-ASA SPC
ASA Shipping Policy 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

15 March 2018

The 30th Interim Meeting ofthe ASA Shipping Policy Committee (SPC)
in Tokyo on 15 March 2018

Attendance List

CHAIRMAN< Japanese Shipowners’ Association >Mr Yuji Isoda

Vice President, Japanese Shipowners’ Association

MEMBERS< Federation of ASEAN Shipowners’ Association ><FASA-Indonesia>

Mr Johnson W. Sutjipto(President Director, PT Salam Bahagia)<FASA-Vietnam >Mr Bui Viet Hoai

(Chairman, Vietnam Ocean Shipping J/S Co.)Mr Do Hung Duong(Member of Board of Management,Vietnam National Shipping Lines)

Mr Vuong Ngoc Son(CEO, Vinaship Shipping J/S Co.)Mr Nguyen Canh Duong(Deputy Manager, Vinaship Shipping J/S Co.)

< Hong Kong Shipowners Association >Mr Erxin Yao(Director, Corporate Planning & Corporate Administration,
Orient Overseas Container Line Ltd.)-5-

< Japanese Shipowners’ Association >Mr Keiji Tomoda(Associate Director, Kawasaki Kisen Kaisha, Ltd.)Mr Tsuyoshi Aoki

(Associate General Manager, Corporate Planning Division,
Mitsui O.S.K. Lines, Ltd.)Mr Hiroki Harada(Corporate Officer, Nippon Yusen Kabushiki Kaisha)

Ms Keiko Kosugi(Deputy General Manager, Corporate Planning Group,
Nippon Yusen Kabushiki Kaisha)< Korea Shipowners’ Association >Mr Soo Ho Kim(Executive Vice President,
Hyundai Merchant Marine Co., Ltd.)< National Association of Chinese Shipowners >Mr C.K. Ong(President, U-Ming Marine Transport Corp.)

Mr James Yeh(Executive Vice President, Wan Hai Lines Ltd.)Mr Michael Huang(Chairman,Evergreen Shipping Agency (Japan) Corporation)

GUEST SPEAKERMr Takuma Matsuda(Researcher, Japan Maritime Center)ICS SECRETARY
Mr Simon Bennett(Deputy Secretary General,
International Chamber of Shipping)

ASA SECRETARY
Mr Ang Chin Eng(Secretary General, Asian Shipowners’ Association)

LEGAL COUNSELMr Robert Magovern(Attorney, Cozen O’Connor)

SECRETARIATMr Hironobu Koizumi(Managing Director, Japanese Shipowners' Association)

Mr Hiroyuki Yamagami(Manager, Planning Division,Japanese Shipowners’ Association)

Mr Motoki Bessho(Planning Division, Japanese Shipowners’ Association)

Ms Moe Murakami(Planning Division, Japanese Shipowners' Association)-6-