Chapter 3  Shipping, Shipbuilding and Ports in Transition Period


3. 1 Changing International Shipping Climate and Future Course of Ocean Shipping


   In the field of international shipping, there have emerged new developments which a conventional international shipping policy cannot always cope with. These developments include intervention in shipping activities by governments of developing countries, inroads into cross-trade routes by state-trading countries and the U.S. Government's regulation of the shipping business.
   The structure of the Japanese merchant fleet, at the same time, has changed greatly over the past ten years. The international competitiveness of Japanese-flag ships manned by Japanese seamen has declined, and Japanese shipping's dependence on chartered foreign-flag tonnage has increased, resulting in a downtrend in the loading share of Japanese ships. (See Figs 21 and 22)
   Under such circumstances, the immediate basic objective of Japan's shipping policy should be the establishment of ways and means to develop the country's ocean-going merchant fleets with Japanese-flag ships as its core and the preservation of Japanese seamen through stabilization of their employment situation, thereby ensuring the country's economic security and an appropriate international payments structure.
   To this end, it is necessary to examine measures for effectively coping with the changing international shipping situation and to exert efforts for building up the Japanese merchant fleet through such measures as construction of highly-streamlined vessels and building of LNG carriers to ensure stable supplies of energy sources.


3. 2 Changed Situation for Seamen and New Seafaring System


   The climate surrounding Japanese seamen has changed greatly during the past ten years, because of such developments as the progress in the technological innovation of ships, particularly the development of "M-zero" class vessels, and the increase in the chartering of foreign-flag ships. (cf. Table 17)
   Therefore, it was decided to study the modernization of the seafaring system entailing new work duty arrangements in order to enable Japanese seamen to fully display their outstanding knowledge and skills and to perform their duties enthusiastically under comfortable working conditions. The aim is to secure the employment of Japanese seamen and to increase the proportion of Japanese-manned Japanese-flag ships in world shipping.
   In response to the world-wide need for improving the quality of seafarers, the International Convention on Standards of Training, Certification and Watchkeeping, 1978 (STCW Convention), was adopted. Japan is called on to ratify the convention and to review her seafarers training system to match the Convention.


3. 3 Shipbuilding in Transition Period


    The Japanese shipbuilding industry grew smoothly as a key industry during the country's high economic growth era. The industry, however, has plunged into a serious structural recession following the first oil crisis because of a drastic drop in newbuilding orders due to such factors as the slackening of the shipping market and the surplus tonnage of ships, particularly large tankers. As a consequence, the business of shipbuilding firms deteriorated rapidly.
   Thus, various measures were implemented in a bid to overcome the shipbuilding recession, to stabilize the management of shipbuilding firms, and to eliminate the structural supply-and-demand disequilibrium, The measures included the scrapping of excessive newbuilding facilities and the strengthening of the government-aided shipbuilding system (Keikaku Zosen) to create new demand.
   These anti-recession measures have produced results. The shipbuilding industry, which had been plagued by the prolonged recession, at long last saw an increase in the annual volume of newbuilding bookings in fiscal 1979 for the first time in six years. Signs of recovery became visible and the industry appears to have hit the bottom. (See Fig. 23)
   In the unstable market situation, marked by a supply-and-demand gap which is expected to last for some time, it is necessary to continue efforts to increase the corporate strength of Japanese shipbuilding enterprises while making efforts to avert friction with West European shipbuilding countries which are concerned about a possible expansion of Japan's share. Besides, it is necessary to tackle, from a long-range standpoint, such basic problems as the question of competition from developing shipbuilding countries, the manpower problem and technological innovation.


3 .4 Ports Coping with Diversification of Demand


   With respect to port development, the past ten years have been characterized by the improvement and diversification of facilities. Emphasis was put on the preservation of the environment and energy-related measures, in addition to improvement of port space to cope with a sharp increase in physical distribution demand and technological innovation in transportation. Efforts were also made to cope with the relocation of production functions and the progress of regional development.
   As for future tasks, ports, firstly, should play a leading role in inducing and assisting the dispersion of Japan's economic society to provincial areas for the purpose of overcoming limitations in energy resources, making better use of the nation's land space, and preserving the natural environment.
   Secondly, greater attention should be paid to the role played by ports in their localities, and an attractive production and living space, consonant with the characteristics of each locality, should be created.
   Thirdly, measures for preserving the environment and ensuring safety should be strengthened further. To this end, it is necessary to promote positively such projects as the construction and/or improvement of ports as physical distribution base and energy supply and storage base, the improvement of ports as a center of the local community, the redevelopment of port cities, and the construction of waste-dumping and disposing facilities.
   In this case, it is indispensable to gain the cooperation and understanding of the local residents. At the same time, it is necessary to promote systematic development of port construction technology, as well as to conduct adequate studies on measures for securing funds for the construction and/ or improvement of ports (cf. Fig: 24, 25, Table 18)


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