(1) Trends in oceangoing shipping
Business was good for oceangoing shipping companies in FY1990, supported
by favorable expansion in the Japanese economy, and operating income increased.
Non-operating income and loss, operating income and loss, and net profit after
taxes for the period rose for the third year in succession.
However, the surplus was lower than for the previous year, due to an increase
in the price of fuel.
There was a relative improvement in shipping business conditions into FY1991,
and on regular North American lines there were revisions and intensiveness amongst
business groupings.
Efforts were made for orderly operation of routes by ships both within and
without the alliance.
However, the future of shipping business is as cloudy as in the past. Consistent
effort is required to revitalize the competitiveness of international mercantile
marines and to improve business. It is necessary to establish an effective physical
distribution system which will be able to handle changes in the international
distribution environment and to develop comprehensive, international distribution
which incorporates ground transport, and includes a high quality information
system.
The number of Japanese traveling overseas byship is increasing yearly. New
passenger routes are being opened up to countries surrounding Japan and passenger
vessels are being commissioned successively. Efforts are required to ensure
safe operation and protection of passengers. Demand should also be increased
to ensure the sound development of passenger cruise business by offering "fly
and cruise" options.
(2) Establishment of a Sea Passenger Transport Network
Measures are now being considered for furthering a modal shift from land
to sea transport. Consideration is also being given to the form a ferry network
which can handle changes in the structure of demand and the rising levels of
transport services.
The government is cooperating with local public entities for the establishment
and maintenance of passenger's liner services to isolated islands.
(3) Domestic Shipping, and Structural Improvements in Harbor Transport
Small and medium sized companies form the greater part of the domestic shipping
industry which is characterized by excessive competition. Structural improvements
are underway in the industry.
"Scrap and build" is one element of adjustment of tonnage of fleet carried
out by the Japan Federation of Coastal Shipping Association. In recent years,
the economy has been strong, demand for ships increased, and the modal shift
is in the process of being implemented. To cope with this, efforts are being
put into strengthening operations and striking a balance between the reserve
ratio of ships to construction.
A switch is being made to mechanization in harbor shipping in order to handle
the advance in distribution needs and containerization. Matters such as the
diversification of operations and the switch to the equipment industry has become
important. Various measures such as construction of comprehensive import terminals
are being taken to deal with this.
The Japanese shipbuilding industry has gotten rid of the uneven balance
between supply and demand, and character of excessive competition. This has
been brought about through the implementation of restructuring measures and
an improvement in conditions in maritime transport.
In the new shipbuilding industry, conditions are in place for potentially
relatively stable operation. New operation will center on a strong demand for
large volume construction replacing shipbuilding.
It is important that consideration would be given to stability in mid-term
and long-term demand and supply while raising the level of technology in the
future, in order to restructure a market which has been weakened as a result
of long-term depression.
Further, the Japanese shipbuilding industry needs to make an international
contribution which is befitting its international status based on discourse
with other countries. This should contribute towards establishing order in the
international shipbuilding industry, developing technology to preserve the international
environment and include measures to control the operation of aged vessels.
The marine industry, on the other hand, is experiencing a recovery in demand
in shipbuilding along with increased production; however the impact of the past
long-term slump will be long-term. In the future it is necessary to build on
economic and social conditions and establish a business base which can handle
changes in the market on a mid term and long-term basis.(fig49)
The number of seamen is being continually reduced due to factors including
rationalization of operations by oceangoing shipping lines. Measures are being
taken in order to secure employment for Japanese seamen on foreign ships.
Necessary measures are also being taken in the domestic shipping industry,
on the other hand, to deal with the occurrence of aging and shortages of seamen.
A consensus has been reached for the inclusion of foreign seamen and vessels
with mixed crews in ships such as oceangoing shipping passenger vessels, and
deep sea fishing vessels, has been operated according to agreements reached
with the companies concerned.
Education of crews is undertaken to ensure they cope effectively in satisfying
the social needs and to create a more attractive and international working environment.
In modernizing the system for dealing with seamen, and consideration is
being given to the direction of modernization of ships through building on achievements
reached thusfar. Furthermore, in order to raise the level of seamen's working
conditions, from around April 1992 working hours are to be reduced a certain
degree. This is a first step towards early introduction of an average 40-hours-working
week.
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