Section 2. Trends in International Transport Business and Future Issues


1. Change in the Order of International Shipping

   Efforts were made by UNCTAD to adjust such north-south problems in shipping as adoption of the national flag discrimination policies taken by developing countries. There were, however, some countries among the developing nations that instituted a one-sided national flag discrimination policy. To cope with this situation, Japan also enacted a law concerning a special measure against the disadvantageous treatment per formed by foreign countries to Japanese ocean-going shipping operators", which was enforced in July, 1977.
   Further, the advancement made by Eastern European countries in shipping has been a threat to advanced shipping nations. It is considered necessary for Japan to proceed with a plan to take effective countermeasures in this situation in cooperation with other countries.
   Meanwhile, the moves over the safe passage across the Malacca-Singapore Strait have been increasing in importance. The three countries in this area compiled a bill for the restriction of passage through the strait. It calls for over a 3.5 meter distance between the bottom of a ship and the sea bed and the necessity of enforcing a separated two way passage system. In September, 1977, this restrictive bill was debated at IMCO.

2. Japanese Shipping in a Period of Change and Employment problems of Seamen

   1) Current status of ocean-going shipping:
   The tonnage carried by the Japanese mercantile meet has been increasing in both exports and imports in 1976. The volume of transport by container vessels, in particular, showed a sharp increase. In addition, although the world shipping market remained sluggish, Japanese oceangoing shipping businesses in fiscal 1 976 showed recovery reflecting the steady exports. There was, however, a clear discrepancy in the business results between the companies.
   2) Current status in employment of seamen:
   The effective ratio of job opening to job seekers for seamen continued to sag in 1976, while the rate of reserve hands of seamen on land to total seamen employment reached a high 69.7% as of October, 1976; thus, supply and demand of seamen continued to remain unbalanced. In addition, the proportion of oceangoing seamen, in the middle to high age groups increased. Thus, it will become more difficult for shipping companies to cope with the employment and management situations expected to arise in the future.
   3) Decline in the international competitiveness of Japanese vessels and structural changes in the Japanese mercantile fleet:
   The sharp increases in various expenses in recent years, especially the rise in expenses for seamen has caused a steep decline in the international competitiveness of the Japanese mercantile fleet. Consequently, the Japanese mercantile beef has changed substantially in structure: the volume of foreign chartered ships increased sharply. (Figure 2-5-4). And the so-called "put-ups" and chartered backs showed a particularly sharp increase.
    4) Future issues:
   The direction in which Japan's shipping will go in the future should be decided after careful deliberation. In these deliberations, the importance of shipping to our country should be taken into account and the basic premise should be that Japanese ships with Japanese crews be the pillar of the Japanese mercantile fleet.
   In view of the expected future trends in Japan's shipping industry, in November, 1976, the Minister for Transport asked the Shipping and Shipbuilding Rationalization Council about Japan's oceangoing shipping policy. In February, 1977 the Minister for Transport asked the Labor Relations Commission for Seafarers for information concerning the basic policies expected to be applied for employment of seamen in the future. Discussion on these matters has been under way.

3. Problems in International Aviation

   Japan's share of aviation in world international aviation transport have been increasing in both passengers and freight carried, registering 4.7% (passenger-kms based) and 6.9% in 1976 (ton-kms based).
In addition, negotiations have been conducted between the U.S. and Japan to revise the U.S.-Japan Aviation Agreement to straighten out the disequilibrium in the rights and interests of line assignments and transport capacity between the two countries. In recent years, demand has been increasing, particularly by developing countries, that economic matters such as transport capacity, charter flights and air fares be deliberated not only by IATA but on a government-to-government basis. In April, 1977, a special ICAO transport conference was held.
   With regard to the recent occurrences of many highjacking incidents, the Japanese Government decided in October, 1977 to establish the "highjacking and other inhumane violence preventive measure" headquarters. The headquarters was expected to work on six areas of enforcement for highjacking preventive measures such as anti-Japanese Red Army measure, thorough inspection for safety, etc.

 


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