21 Apr 2022
Singapore

Press Release on the Joint Statement of the ASA SPC 34thInterim Meeting 2022 held on 18 April 2022
The 34th Interim Meeting of ASA SPC was held online on 18 April 2022
due to precautionary measures against COVID-19. The meeting waschaired by Mr Keiji Tomoda, Vice President of the Japanese Shipowners’
Association and participated in by 24 delegates from ASA member
associations of ASEAN, Chinese Taipei, Hong Kong, Japan and Korea,
as per the participants list attached. The meeting was called to order bythe Chairman at 2:30 pm JST. ASA SPC members were reminded of theimportance of full compliance with all applicable competition laws
throughout the entire programme and the meeting was conducted withcounsel present, as in previous meetings. The outline of the meeting isas follows:
1. External Factors Affecting the Shipping Industry
Current various external factors surrounding the shipping industry suchas the influence of the COVID-19 Pandemic, the Ukraine Crisis and new
green responsibilities were discussed. Delegates reaffirmed their firm
determination to carry out their tasks as global logistic providers so as tominimise supply chain disruptions in cooperation with all stakeholders,
while recognising the priority of crew safety.
2. Developments of International Maritime Policy
Broad policy issues concerning international maritime industry werediscussed. Mr Helio Vicente, Manager (Shipping Policy) of theInternational Chamber of Shipping (ICS), made a presentation on ICS’s
recent engagements on the issues of COVID-19, protectionism, trade andso forth. Delegates appreciated ICS’s efforts to date and echoed hisemphasis on the importance of reopening the WTO negotiations for theliberalisation of maritime services as soon as possible. With regard to theCanal Issues, the discussion concentrated on the recent developments
on tolls at the two greatest canals around the globe, the Suez Canal andthe Panama Canal, both of which underpin international logistics in an
uncertain situation. Delegates reaffirmed the critical importance for sucha global infrastructure of avoiding a sudden and significant change of the1tolls and charges, as well as to secure a sufficient prior notice andappropriate explanation by the Authorities. In this connection, Delegates
expressed their confusion against new surcharges introduced on 1 March2022 with only 48 hours prior notice, then to be revised on 1 May 2022 by
the Suez Canal Authority (SCA), which resulted in roughly a 7 to 20% toll
increase for many types of vessels, in addition to a 6% tariff hike for mosttypes of vessels, implemented on 1 February 2022. The Committee
shared its concern that high uncertainty in the mechanism of operating thesurcharge may damage the stability and reliability of the Canal,
recognised that it was enormously important for the industry to jointly raise
our united voice to the SCA and confirmed to continue tackling this issue
with close cooperation with other international organisations such as theICS so as to reflect all stakeholders’ propositions. As for the Panama
Canal, Delegates were also disappointed by the proposal for the new toll
system dated 1 April 2022 by the Panama Canal Authority (ACP), as themark-up for some types of vessels may exceed 100% in 2025, comparedwith the current toll. While some positive elements are included in the
proposal such as a sufficient prior notice period with a formal consultation
mechanism, Delegates shared a recognition that such a significant toll
hike may not be compatible to the long term sustainability required to a
global infrastructure and confirmed that we should submit our comments
to the ACP during the formal consultation period to urge the ACP to avoid
radical rate increases, based on the current unprecedented market
condition.
3. Anti-Corruption Issue
The Committee reported recent developments on Anti-Bribery issues suchas the discussion at the IMO and activities by the Maritime Anti-Corruption
Network (MACN). Delegates renewed their determination to combat any
kinds of corruption and were encouraged by a recent SCA circular,proclaiming its zero-tolerance policy against any act of facilitation payment
or gift during the Suez Canal transit as one of the significant fruits fromthe efforts of all stakeholders concerning this issue.
4. Anti-trust Immunity and US Legislative Developments
The latest developments concerning the review of the current anti-trust
immunity system in a number of jurisdictions were reported by Mr Robert
K. Magovern, Vice Chair of Transportation and Trade at Cozen O’Connor
and the SPC’s legal counsel. Delegates reconfirmed the ASA’s longstanding policy that the anti-trust immunity system for cooperative carrier
shipping agreements was indispensable for the healthy development of
the liner shipping industry and the maintenance of a reliable service to2

the entire trading community. The Committee commended the ASA for
its active support of industry efforts to maintain anti-trust exemptions forliner shipping agreements and urged continued activity in this regard. Mr
Magovern also made a presentation on developments regarding recent
US legislative developments such as the pending US Ocean Shipping
Reform Act (OSRA) bills. Delegates agreed to keep watching thedeveloping situation. Before the conclusion of the meeting (4:30 pmJST), the Chairman announced his intention that the next SPC meeting
would be held in Singapore in autumn this year if the situation allowed.
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.

For media enquiries, kindly contact:
Dylan Ow
Technical ManagerAsian Shipowners’ Association (ASA)
Tel : (+65) 6325 4737
Email : information@asa.org.sg
Website : www.asianshipowners.org
Editor’s Note:
The Asian Shipowners’ Association (ASA) is a voluntary organization of the shipowner associations of Australia,
China, Chinese Taipei, Hong Kong, Japan, Korea and the Federation of ASEAN Shipowners’ Associations
comprising shipping associations of ASEAN countries. The aims of the ASA are to promote the interests of Asianshipowners. Between annual ASA meetings, the ongoing work is carried out by five Standing Committees: TheSeafarers Committee (SC), the Ship Insurance and Liability Committee (SILC), the Safe Navigation andEnvironment Committee (SNEC), the Shipping Policy Committee (SPC), and the Ship Recycling Committee (SRC).
It has been estimated that ASA shipowners and managers control and operate around 50% of the world's cargo
carrying fleet.

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