a. World Shipping activities
Maritime cargo movement in 1977 was up 4.3% from the preceding year, a record
low in the past decade except for the all-the low recorded in 1975 under the
worldwide recession caused by the oil shock. On the other hand, hulls in the
world have increased at a rate of 7-10% since mid-1974, however, this trend
ended in the middle of 1977. The hull demand and supply situation is very bad,
and the number of hulls left idle is persistently high. According to this, the
world shipping market remains sluggish by the tanker freight and tramp steamer
freight indexes. (See Figure 9.)
b. Advance in Eastern European shipping and North-South problems
In recent years, Eastern European nations have emerged as a threat to the
advanced maritime nations, and Japan is pressed to study effective countermeasures
in cooperation with other countries. As regards North-South problems in shipping,
adjustments a,e in Progress under the leadership of UNCTAD, however, some developing
countries institute a one-sided national flag discrimination policy. To cope
with this situation, in June 1977 Japan enacted a Law concerning Special Measures
against Disadvantageous Treatment by Foreign Countries to Japanese Oceangoing
Ship Operators. c. Other shipping-related moves.
At NCO, a draft for rules concerning navigation through the Malacca and
Singapore Straits was approved in November 1977 and a treaty concerning control
over tankers was adopted in February 1978.
a. Trends in ocean-going shipping
Reflecting the gloomy picture of the world shipping market, Japanese shipping
enterprises are suffering a depression) especially tankers and tramp steamers.
Since the hull composition is different from company to company, there are
great disparities in business conditions between the shipping companies.
b. Decline in international competitiveness of Japanese shipping industry,
and structural changes in Japanese merchant fleet
In recent years, increases in seamen salaries and other overhead costs coupled
with a sharp appreciation of the yen, have greatly reduced the competitiveness
of Japanese shipping to the advantage of foreign vessels manned by seamen from
developing countries. There is every sign that shippers win change from Japanese
shipping agents and go to cheaper foreign chartered vessels. The ratio of foreign
chartered vessels to Japanese merchant fleet vessels reached 46.3% in 1977.
(See Figure 10.)
In recent years, the rise of "tie-in" among foreign chartered ships
has become pronounced.
c. Seaman's employment situation
The monthly demand-supply ratio for seamen has been persistantly low. In
October. 1977, the ratio of employees on part-pay furloughs to the number of
crews reached 73.4%. Under this situation, in December 1977, the Central Labor
Relations Commission for seafarers made a proposal entitled "Basic Policies
for the Future of Seaman,s Employment.".
Fully realizing the gravity of the situation, the government enforced the
"Special Law Concerning the Promotion of Seaman's Employment" from January 1978.
Under the provisions of this Law, a Seaman's Employment Promotion Center was
inaugurated in June 1978 for the purpose of finding jobs for seamen.
d. Future problems
As tentative countermeasures for the shipping depression, it is necessary
to take proper steps such as reducing or diversifying excess hulls. The industry
is urged to improve its management structure from a long-range viewpoint.
As regards structural changes in the Japanese merchant fleet combined with
its loss of international competitiveness, a Subcommittee of the Shipping and
Shipbuilding Rationalization Council prepared a report urging that the Japanese
shipping industry change its course from the hitherto out-and-out expansionism
to "leaving-well-enough-alone"endurance and perseverance.
Effective measures should also be taken to promote employment and stability
of the seamen can perform their task through their knowledge and skills.
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