The problem goes back to 1995 when freighters introduced bigger ships to meet the needs of an expected growth in trade around the world. The result, however, was a fall in transportation fees. With exports once again picking up since last year, freighters now believe this is the time to raise their fees. What's more, the rate increase would help compensate for some of the lost revenue the freight industry has incurred due to the sluggish Japanese economy. The rate hike talks have also raised the question of cartel.
Shippers argue the hike is monopolistic and violates the spirit of free trade.
Japan's Ministry of Transportation has submitted a bill to the Diet, Japan's parliament, to regulate any unfair business practice that would mean losses to any parties. The bill is still working its way through parliament. Although the hike seems a sure thing, Kawamura of the Japan Shippers Association said exporters still have the option of re-negotiating their fees. Freight companies may also be disadvantaged come 2000. Suzuki said eastbound traffic is likely to decline as the US economy begins to slow.