Vanguard for maritime reform in Asia, the Asian Shippers’ Council (ASC) is at the forefront of a global campaign to bring about maritime reform in Asia, managing the initiatives and providing guidance on how these reforms may best be accomplished.

The decision was reached at the recent Global Shippers’ Forum (GSF) meeting in London, where the issue of maritime reform topped the agenda. GSF noted, "Reforms enacted in Europe and North America have brought about a more market-based environment. A similar environment must follow in Asia and efforts will be directed to realise this goal."

Having fought long and hard over this issue, ASC’s Chairman John Lu is delighted with this development. Said Lu, "Liberalisation and regulatory reform are the key drivers of global trade and growth. Protectionism of any kind is counterproductive and the way forward to sustained and balanced global economic growth is dependent on obtaining open and competitive transportation markets for world trade.

"By working with our counterparts from across the globe we will substantially increase the prospects of creating competitive and efficient systems which will enhance the flow of ocean freight."

As net exporters, Asian countries have much to gain from a market based environment,yet the governments have allowed cartels to operate unchecked. "The policy of appeasement towards liner cartel is hurting the shippers and damaging the economy," Lu remarked.

Asia pays heavy price for government inaction Cai Jiaxiang, Convenor for Greater China, "In 2008, China paid some RMB50 billion (US$7.3 billion) in surcharges and terminal handling charges on a merchandise export of US$1.43 trillion. This will only increase. With its sizeable volume, every dollar increase in surcharge on Chinese shippers would translate into many more dollars for shipping lines than it would elsewhere."

Asian shippers’ situation has worsened after the European Union outlawed conferences and cartels in October 2008. There are more surcharges and higher surcharges. Some of the recent introductions are Container Sealing Fee, Electronic Release of Cargo, Late Bill of Lading Pick Up Fee and Late Issuance of Shipping Instructions bringing the total number to surcharges to over 20 for some. No other industry has quite as manysurcharges.

On the Rotterdam Rules, ASC has appointed a special convenors’ task force to assess the impact of the Rules for Asian Shippers.

ASC’s newly-appointed Secretary-General Rohan Masakorala, said, "While the Rotterdam Rules provide the world with an up-dated cargo liability scheme in keeping with the requirements for door-to-door transport, our members are concerned that the Rules do not provide protection for exporting cargo interests."

At the same time ASC recognises that some of the existing commercial shipping practices are also at odds with the best interests of shippers. Hence, the task force purpose is two-fold: a, to examine the best approaches and methods of securing changes to existing business terms used in commercial shipping, such as securing appropriate amendments under Incoterms; and b, to evaluate the shipper benefits derived from the

provisions of the Rotterdam Rules Lu said. "Through the effort of the task force, ASC will be able to determine the best methods of bringing about changes to commercial shipping practices that are necessary

to balance the business relationships of the parties involved in the international supply chain."

Increasing piracy is a cause for concern not only for shipowners but for shippers. ASC’s South East Asia Convenor Pedro Vicente Mendoza said, "Shipping is the lifeline of international trade, with some 90% of world trade by volume transported by sea. Unless decisive action is taken to tackle the piracy scourge, especially at the key chokepoints –

in the Singapore/Malacca Straits and the Gulf of Aden - shipping and trade will be affected and costs will escalate."

A multi-faceted approach is needed, especially in Somalia, which has been without a functioning government since 1991. ASC has joined the international community in searching for a solution to tackle the piracy menace, which has spread beyond the country’s immediate coast to the Gulf of Aden and in the Indian Ocean.