Asian Shipowners’ Forum
10 Anson Road, #28-01AInternational Plaza, Singapore 068898
Tel: (65) 63254737 Fax: (65) 63254451
General Email: information@asf.com.sg

The 18th ASF Joint Statement
The 18th Asian Shipowners' Forum (ASF) was held in Tainan from 25th to 27th
May 2009. The meeting was attended by 118 delegates from the Shipowner
Associations of Australia (ASA), China (CSA), Chinese Taipei (NACS), Hong
Kong (HKSOA), India (INSA), Japan (JSA), Korea (KSA) and from theFederation of ASEAN Shipowners' Associations (FASA), which comprises the
Shipowner Associations of Indonesia, Malaysia, the Philippines, Singapore,
Thailand and Vietnam. The Forum was chaired by Mr. Arnold Wang, Chairmanof the NACS. A seminar was also held after the Forum meeting withrepresentatives from the Round Table of International Organisations.
The 18th ASF warmly welcomes the admission of the Indian National
Shipowners’ Association (INSA) as a new member of the Asian Shipowners’
Forum. INSA was established 80 years ago and has 36 member companies witha combined gross registered tonnage of 9.02 million tons, representing 90% of
the total Indian tonnage. With INSA as a new member, the ASF now represents
nearly 50% of the world’s cargo carrying fleet. The event marks a new milestone
in the history of ASF.
The Forum reaffirmed its strong determination that Asian shipowners must
increasingly express their views on issues that affect global shipping in acoordinated and consensual manner. The ASF urges its members to clearlypresent the ASF views on important shipping issues affecting the shipowningcommunity to their respective governments.
The ASF noted that the Panama Canal Authority (ACP) had announced shortterm reductions of their charges on 30 April 2009 in light of the current economiccrisis. However, the effective period is only between 1 June and 30 September
2009 and the forum agreed to urge the ACP to take some more meaningful
reductions of the longer duration.
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The ASF continues to deal with principal matters related to shipping in aproactive and effective manner through its 5 Standing Committees. Views andactivities on major issues highlighted by the Committees to the Forum aresummarized as follows:

Shipping Economics Review Committee (SERC)
The ASF noted that the 21st interim meeting of the SERC was held in Tokyo on
10 December 2008. The Chairman of the Committee, Mr Akimitsu Ashida,highlighted the following issues in his report.
World Economy
The forum noted that the financial crisis had spread globally and the Asianshipping industry is in testing economic environment. The delegates wereencouraged to calmly consider underlying implications of the crisis in view of thefact that the crisis could be a good opportunity to make a comprehensive reviewof their business models.
Dry Bulk and Tanker Shipping
It was noted that the dry bulk market in 2009 would be moving in a harsh climate
due to delay in recovery of cargo movements to the developed countries andconcentration of new deliveries in the second half of the year. On the other hand,
it was also recognised that the anticipation at the Tokyo meeting that the numberof new building orders to be cancelled could reach as many as 1,000 vessels was
now turning to reality and the market will be encouraged by the active scrappingof more than 500 ships since September 2008. Regarding the tanker sector, whilesome 100 single-hull tankers will be withdrawn from 2009 until the end of 2010,
it is anticipated that more than 60 vessels of VLCC will be newly delivered in2009 alone. We shared the concern that the current tanker market condition
showing a surplus tonnage would remain for the time being.
Liner Shipping
As the shocking effects of the financial TSUNAMI have clearly extended to theTrans Pacific and Intra-Asia trades, the CEOs of Asian container lines were
urged to handle the situation in a rational and patient manner to ensure thesustainable operation of the liner business in these trades and to keep customers
well-informed of the difficult situation faced by carriers.

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Antitrust Immunity for Liner Shipping
The ASF reaffirmed its long-standing position that the antitrust immunity system
is indispensable for the health of the shipping industry. With regards to the Draft
EU Regulations on Consortia published in October 2008, the meeting agreed tocontinue to work with interested parties to develop a better understanding of thebenefits and the role of the consortia system.
The Chairman of SERC
The ASF endorsed that Mr Yasumi Kudo, Executive Director of the JSA andPresident of NYK Line, should take over the chairmanship from Mr Akimitsu
Ashida, who had been Chairman of the Committee since 2005. The ASF
expressed its thanks to Mr Ashida for his services as the Chairman.

Ship Recycling Committee (SRC)
The ASF noted that the 12th interim meeting of the SRC was held in Taipei, on
30th of March 2009. The Chairman of the Committee, Mr. Arnold Wang
highlighted the following issues in his report.
International Convention for the Safe and Environmentally Sound
Recycling of Ships
The ASF discussed the recent developments on the draft International
Convention for the Safe and Environmentally Sound Recycling of Ships
developed by the IMO Marine Environment Protection Committee (MEPC). The
ASF noted that, in October 2008, MEPC58 approved the text of the draft
convention and adopted at a diplomatic conference which took place in Hong
Kong from 11 to 15 May 2009. The ASF supports the convention and urged IMO
Member States to ratify it as soon as possible in order to ensure the early
availability of compliant recycling capacity. In this respect, the ASF urged all
stakeholders to improve recycling capacity and prepare for the Convention
regime during the transitional period.
Environmental Concerns
In line with the downturn in the world economy, the cargo volume in the world
maritime trade had drastically reduced. In this connection, shipowners are underpressure to discard their obsolete and less-efficient vessels for recycling. The
ASF noted that there is concern that the ship recycling capacity atenvironmentally sound facilities could potentially fall short in the near future and5recognised that careful consideration would be necessary to maintain efficient,safe and environmentally-friendly ship recycling. In this respect, the ASF urged
consideration to refocus excess building capacity into environmentally acceptable
recycling facilities.
ISO 30000 Issues
The ASF considered that ISO activities in respect of its 30000 series, whichmainly deals with the management, operation, audit and third party certificationof recycling facilities, could overlap with the activities of the IMO in connection
with the development of its draft convention and the associated guidelines. The
ASF noted that a number of governments expressed their concern at the MEPC58
that the ISO 30000 series would duplicate some of the provisions in the draft
IMO convention and its associated guidelines, and thus would confuse
stakeholders. The ASF therefore considered that the possibility of double
standards should be avoided in order to facilitate the efficient operation of ship
recycling.
Finally, it was confirmed that Asian shipowners, as the major players in the world
shipping industry, will continue to discuss the ways in which shipowners canpromote safer and more environmentally sound ship recycling.

Seafarers Committee (SC)The ASF noted that the 14th Interim meeting of the SC was held in Kuala Lumpur
on 21st November 2008. Mr. Li Shanmin, the Chairman of the Committee,
reported on the Committee’s activities during the past year.
Piracy attack in the Gulf of Aden
The ASF joins with the SC in expressing its serious concern over the attacks onships in the Gulf of Aden, which represent a severe threat to the safety ofseafarers on ships trading through this area. Attacks are still continuing,sometimes in full view of the naval escorts. The ASF expresses its deepest
concern over the potential trauma suffered by seafarers on hijacked ships passing
through the area, as well as the concern felt by their families.
The ASF is pleased to note the developments within the United Nations and IMO
to review existing national legislation to prevent and punish piracy and armed
robbery at sea as part of IMO’s anti-piracy strategy. The ASF further supports theinitiatives of industry associations to produce best management guidance onhuman element issues arising from incidents of piracy and attack.
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Ratification of the ILO Maritime Labour Convention 2006
The ASF is pleased to note the progress towards the final entry into force of the
Maritime Labour Convention 2006, and encourages all ASF members to continue
to work with their individual administrations to achieve early ratification of theConvention.
The ASF welcomes the development of the Guidelines for flag State inspections
and port State control officers carrying out inspections under the MLC 2006 andconsiders it important for members to continue to encourage their individualadministrations, where appropriate, to refer to the Guidelines in order to observe
consistent and enforcement of the Convention without over-burdening
shipowners and seafarers.
Fair Treatment of Seafarers in the event of a Maritime Accident
The ASF noted the discussion of the SC on the practical application of the
IMO/ILO Guidelines on the Fair Treatment of Seafarers following a Maritime
Accident. The ASF joins with the SC in calling upon all governments to ensurethat the seafarers are given a fair trial with full rights of defense, in accordancewith the relevant international instruments.
The ASF welcomes further actions by ILO and IMO to ensure fair treatment ofseafarers in the event of a maritime accident.
Economic turmoil and seafarers’ recruitment and training
The worldwide economic turmoil has contributed to the recent fall in shipping
marketsthat
has
resultedinincreasing
difficultyintheemployment of seafarers due to ships being withdrawn or laid up. The ASF
recognises the benefit of maintaining employment, and therefore considers that
employment conditions of seafarers should be consistent with the economic
situationofthecountryor
regionwheretheseafarers are domiciled. Members of the ASF agreed to maintain as much as
possible
recruitment
andtraining
initiatives
despitethepresent market conditions.

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Safe Navigation & Environment Committee (SNEC)The ASF noted that the SNEC held its 15th and 16th Meetings in Singapore on
15th September 2008 and 17th March 2009 respectively. Mr. S. S. Teo, Chairman
for the Committee presented his report concerning mainly safe navigation andmarine environment protection issues.
Piracy & Armed Robbery
The SNEC expressed deep concern on the continuing threat of piracy and armed
robbery especially off the coast of Somalia and in the Gulf of Aden. These waters
are currently the world’s most dangerous and accounted for 111 or 37.9% of theattacks globally in 2008.
This year to-date, at least 13 vessels with around 250 crews are still held by theSomalian pirates.
The SNEC strongly condemned these deplorable and dangerous acts of piracy
and armed robbery by these pirates as they seriously threatened the safe
navigation of ships and also put at high risk the lives of the crew on board. The
marine environment is also under serious threat of pollution if fully laden crude
oil or chemical tankers are attacked.
The Meeting therefore strongly urged all ASF members to cooperate and abide by
the advisories and guidance issued by the naval and air assets patrolling thewaters off the coast of Somalia and in the Gulf of Aden.
In this respect, the ASF supported the SNEC’s expression of deep appreciation to
all governments that have or are planning to commit naval and air assets to patrol
the waters off the coast of Somalia and in the Gulf of Aden.
In light of the current economic situation, the ASF strongly urged all
governments and littoral states to strengthen and increase their naval and air
surveillance to deter any potential threats of pirate attacks. At the same time, allship masters are urged to maintain full vigilance and to adhere strictly to establish
best-management practices to deter pirate attacks.
Enhancement of Safety, Security & Environmental Protection in the Straitsof Malacca & Singapore
The SNEC reaffirmed its support for the Cooperative Mechanism1 for the Straits
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The Cooperative Mechanism consists of a Cooperation Forum, a Projects’ Coordination Committee andthe voluntary Aids to Navigation Fund.
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of Malacca and Singapore. It expressed its willingness and strong commitment toparticipate actively in the Cooperation Forum to enhance safety, security andenvironmental protection in the Straits of Malacca and Singapore.
The Committee welcomed voluntary contributions from various States andindustry stakeholders to the Navigation Fund, particularly the recent contribution
by the Japanese Shipowners Association.
MARPOL Annex VI & Greenhouse Gases
The Committee applauded the adoption of measures at the 58th Session of the
IMO Marine Environment Protection Committee (MEPC 58) held last Octoberthat will see a progressive reduction in emissions of sulphur oxide (SOx),
nitrogen oxide (NOx) and particulate matter from ships.
The Committee also took note of developments relating to greenhouse gases(GHG) from ships arising from MEPC 58.
With rising concern and greater awareness of global warming and its effects on
climate change and rising sea levels, the ASF fully endorses the SNEC’s position
that the IMO should serve as the sole forum to discuss the reduction of GHG
emissions from ships, in light of the IMO’s and the industry’s full commitment to
reducing GHG emissions through realistic and pragmatic solutions.
The SNEC further agreed that measures should demonstrate themselves tobe effective in the substantial reduction of total GHG emissions – this can only beachieved by improving the fuel efficiency of vessels through such energyefficient methods as speed reduction and the development and adoption oftechnological means to reduce emissions. Instituting a cap-and-trade mechanism
may be complicated to apply in practice and result in suppression of shipping
activity with possible imposition of unreasonable financial burden.

Ship Insurance and Liability Committee (SILC)
The ASF noted that the 14th Interim meeting of the SILC was held in Hong Kongon 1st April 2009. Mr. George Chao, the Chairman of the Committee, reported
on the Committee’s activities during the past year.
Criminalisation of Seafarers
The SILC expressed its deep concern at the treatment of seafarers who are
unfortunately involved in maritime accidents. Seafarers who are involved in such9

incidents are increasingly being treated as criminals to satisfy public concern
about the effects of the incident, rather than through any criminal culpability.
The ASF echoes the position taken by the SILC, and urges all Governments toreconsider the harm they are doing both to the recruitment of future seafarers aswell as to the reputation of their legal systems by politicizing such incidents andby treating seafarers with little regard for their human rights and as being foundguilty until proven innocent.
Abandonment and Crew Claims
The ASF noted that the Joint IMO/ILO Ad Hoc Expert Working Group on
Liability and Compensation Regarding Claims for Death, Personal Injury and
Abandonment of Seafarers met in Geneva 2nd to 6th March 2009 to finalise draft
amendments to the Maritime Labour Convention, 2006 (MLC, 2006).
The ASF joins with the SILC in congratulating the Expert Working Group on theoutcome of the meeting, and expressed its hope that the amendments are quickly
finalized by the IMO Legal Committee and the ILO Governing Body so that they
can be incorporated in the MLC, 2006, at the earliest possible opportunity after
the Convention has entered into force.
Asian Inter-Governmental VoiceThe ASF took note of and supports the discussion in the SILC urging Asian
Governments to form a regional body to consider and comment on legislation
proposed at the regional level in Europe and elsewhere, particularly if the
proposed legislation will affect international shipping.
Electronic Blue Cards
The ASF joins with the SILC in urging all States to accept blue cards issued byInternational Group clubs in electronic format, in order to ensure that shipowners
can obtain the necessary State certificates swiftly and efficiently, and to reduce
the administrative burden on both States and the IG Clubs

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Next Meeting
The 19th ASF will be held in Hong Kong in May 2010.
The delegates expressed its sincere thanks to the Chairman of NACS and its staff
for the excellent organization of the 18th Asian Shipowners’ Forum in Tainan.

-------Editor's note:
The Asian Shipowners’ Forum is a voluntary organization of the shipowner associations ofAustralia, China, Chinese Taipei, Hong Kong, India, Japan, Korea and the Federation of
ASEAN Shipowners’ Associations comprising shipping associations of ASEAN countries. The
aims of the ASF are to promote the interests of the Asian shipowning industries. Between
annual ASF meetings, the ongoing work is carried out by the five Standing Committees; theShipping Economics Review Committee, the Seafarers Committee, the Ship Recycling
Committee, the Safe Navigation and Environment Committee, and the Ship Insurance andLiability Committee. It has been estimated that ASF owners and managers control and operatenearly 50% of the world's cargo carrying fleet.

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