Section 2. Structural Change of Japanese Mercantile Fleet and Worsening Depression of Shipbuilding Industry


1. Structural Change of Japanese Mercantile Fleet

    The Japanese mercantile fleet consisting mainly of ships built in line with the Government-subsidized shipbuilding program plays a significant' role in the Japanese economy. It ensures stable transport of commodities in response to the need of national economy, inhibits violent fluctuations of fare standards in international trade and contributes to economy of foreign Currencies.
    Recently, the employment of chartered foreign ships has increased as the international competitive ability of Japanese flag ships was lowered by swelling seamen expenses and as the shipping enterprises fell into poor management conditions. As a result, chartered foreign ships accounted for 44% of the Japanese mercantile fleet (Fig. 2-1-2).
    Specifically, there are an increasing number of Japanese flag ships having foreign seamen on board as well as tie-in and chartered-back ships.
    Such a trend seem unavoidable to some extent as long as shipping enterprises seek economic rationality. Even in Such a case, it is desirable to use tie-in ships etc. which allow stable Japanese control.
    The Japanese shipping must develop under international competitions, while securing a fixed amount of Japanese flag ships. For this purpose, the quality of the Japanese shipping enterprises must be strengthened by increasing container ships and introducing super automatic ships, for example. In addition the seaman assignment and reserve systems will have to be Studied again.

 


2. Employment Worries among Seamen

    The ratio of effective job offers to effective job applicants of merchant seamen sharply dropped to 0.27 in August 1976, partly because shipping enterprises promoted operational rationalization. The reserve rate of ocean liner seamen reached 64.8% in the fall of 1975.
    As a result, worries over employment have increased among seamen. As immediate measures, the living of unemployed seamen has been guaranteed and their re-employment has been promoted by the use of an unemployment insurance system etc. In addition, seamen employment stabilization measures are to be prepared from a long-term perspective.
    The current seamen system etc. will be restudied in the future, including the question of boarding Japanese seamen with seamen of developing countries. It is essential to find solutions through thorough talks between labor and capital upon mutual trust, always considering the stable employment of seamen.

 


3. Worsening Depression of Shipbuilding Industry in Japan

   New orders of shipbuilding in the world decreased sharply because of the recent depression. Many new shipbuilding contracts have been cancelled.
    Consequently, total order book in the world fell below the 1970 level in the middle of 1976. The Japanese shipbuilding industry was faced with the same difficulty. The total order book of the thirty-five major shipyards fell to 17.6 million gross tons as of September 30, 1976. (Fig. 2-1-3).
    Tanker depression seriously affected Japan because super large tankers occupy a large portion. The conditions in Japan are more severe than the AWES countries.
    As for the management of the major ten ship builders, the sales in fiscal 1975 exceeded but slightly the fiscal 1974 level owing to the increase in sales in the other fields, such as ground plants, but their current profits fen sharply, thus the management of the shipbuilding industry beginning to worsen to cause serious employment and other problems in the regional society.
    The operating rate of the Japanese Shipbuilding industry in 1980 is estimated to be about 65% of the 1974 level. Thus, for the Japanese shipbuilding industry to cope with the worsening depression, it will have to take various measures including adjustment of the operation rate with due consideration given to the avoidance of international frictions connected with tendering for export ships and at the same time the effects on employment and regional society etc. It should also advance to more technologically concentrated shipbuilding industry by improving ship performances and technology of construction.



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