Chapter 9  Shipping and Shipbuilding in Transition


9. 1 Oceangoing shipping


9. 1. 1 Change in Order of International Shipping

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.

 


9. 1. 2 Japanese Shipping in Transition, and Seamen's Employment Problems

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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