ASF delegates warn current freight rates are insufficient

2008-6-8

Delegates attending the 17th Asian Shipowners' Forum (ASF) in Boao, China earlier this month have expressed "grave concern" that current container freight rates remained "insufficient," to cover the dramatic cost increases triggered by the high price of fuel and port congestion.

They stressed that freight rates were insufficient to recoup past investments and facilitate investment required for the future.

The 132 delegates from the shipowner associations of Australia, China, Taiwan, Hong Kong, Japan and Korea and the Federation of Asean Shipowners' Associations called on the heads of Asian container lines to address these issues, in order to maintain efficient service levels.

It was noted that the antitrust immunity system for ocean carrier agreements, particularly vessel sharing and rate discussion agreements, had been under review in various countries in Asia and the European Union.

In particular, the delegates were worried about the uncertain situation in India. It was agreed that SERC delegates should take the action necessary to help concerned parties in their countries to properly understand the importance of the immunity system "for the health of the international ocean liner shipping."

The delegates also raised concerns that the requirement for 100 per cent security scanning of containers destined for the US at the overseas port of loading by July 2012, would "pose huge implementation problems, such as the practicability of every container being scanned before loading, and the availability of such equipment."

With regard to the IMO draft convention on ship recycling, ASF delegates said safe and environmentally sound ship recycling should be actively pursued as joint efforts by all stakeholders, including ship recycling facilities, shipowners, shipbuilders, ship equipment manufacturers and governments concerned.

The ASF also focussed on the ongoing shortage of seafarers, saying that shipowners shall increase their own efforts to encourage youngsters to become seafarers and to assist their development, in order to improve the number and quality of seafarers.

Source: Schednet
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