JSC head explains decision to shut down
The head of the soon-to-be-shuttered Japan Shippers' Council said that a steady carrier-shipper environment in Japan and the end of conferences governing Asia-Europe trade are the main factors behind the decision to shut down.
On Monday, American Shipper reported that the JSC would close later this year. In May, the council's board of directors will vote on whether to shut the council, which has existed for more than three decades. Indications are they will indeed vote to close.
'The environment has been totally changed since the council was established 35 years ago,' Ted Kawamura, managing director of Japan Shippers’ Council, told American Shipper Tuesday. 'These days, there are no tariff rate increases and consultation meetings over the rate hikes or surcharges, which were the main purpose of establishing the council.
'In the past 10 years, at least, the freight conferences or agreements have been behaving well in the Japanese market. The Ministry of Transport and Fair Trade Commission are watching their activities so that there should be no abuse of the antitrust immunity. Thus the board members concluded that council has fulfilled its historical role to monitor the activity of the shipping cartels for the shippers’ interest.'
Kawamura added that the recession gripping Japan is another factor for shutting down, with shipper members increasingly finding membership fees a burden.
'Most of our members are suffering a sudden and big loss so that their budgets are squeezed even to pay the annual fee to the council,' he said. 'In fact, annual fee for a major trading company is about $30,000.'
Additionally, new tax regulations on non-profit associations, of which the JSC is one, would make it even more costly to operate, he said.
'If the issue is voted for, the council will move to close immediately. However, there must be a liaison office for about six months to close the council completely,' Kawamura said. 'Coincidentally, I was about to retire this year due to my overdue retiring age and was to concentrate on my teaching career.'
The JSC was often at odds with fellow shippers' councils in Asia and other regions over liner antitrust immunity. The council found itself aligned more with national interests, including those of the Japan Shipowners' Association, than in fostering a conference-free environment for shippers.
That clashed with the single-minded drive of the Asian Shippers' Council and the Global Shippers Forum to end ocean carrier conferences.
'Speaking of the other Asian shippers’ councils, they have slightly different structures from the Japan Shippers’ Council,' he said. 'They are mostly government-related organizations or have strong support from the government. Our decision may not affect the activities of other Asian shippers’ councils.' ' Eric Johnson
JSC head explains decision to shut down
