Challenges surrounding the Shipping Industryinjapan.no/wp-content/uploads/2017/01/2-Mr-Kazuyuki-Oda... · 2019-11-21 · The Japanese Shipowners’ Association (JSA) 122 companies,

Challenges surrounding the Shipping Industry

Norway-Japan Maritime Seminar,24 January 2017

Kazuyuki ODAVice PresidentJapanese Shipowners’ Association

What is the JSA?

Leading Examples of Major Challenges faced by theshipping industry

Environmental IssuesPiracyProtectionism and the Level Playing Field

TOPICS

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The Japanese Shipowners’ Association (JSA)

122 companies, as of 1 January 2017(Japanese-registered shipowners, operators and charterers including NYK Line, Mitsui O.S.K. Lines and K Line)

June 1947

Mr Yasumi Kudo, Chairman of NYK

In order for the Japanese shipping industry’s healthy development, the JSA is responding to various issues, such as shipping policy and taxation, piracy issues, andenvironmental issues.

What is the JSA? （JSA website: http://jsanet.or.jp）What is the JSA? （JSA website: http://jsanet.or.jp）

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Members

Establishment

Current President

Environmental Issues, such as green house gas/air pollution/ballast water caused by ships and ship recycling.Piracy Issues, such as incidents off the coast of Somalia and in the Gulf of Aden.Issues on Protectionism and the Level Playing Field.

Leading Examples of Major Challenges faced by Shipping Industry

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I. GHG EmissionsII. Ballast Water ManagementIII. Ship Recycling

Environmental Issues

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I. GHG EmissionsInternational Maritime Organisation (IMO) AchievementInternational Shipping is the first industrial sector in the world which has adopted globally binding measures (EEDI & SEEMP) for the reduction of GHG emissions.

Unilateral EU Regional MeasuresDespite IMO’s continuous sincere engagement with GHG reduction, the EU has been addressing it with unilateral regional measures, i.e. EU-MRV & the incorporation of the shipping sector to EU-ETS.

IMO should be the only professional forum in the world which is capable of appropriately addressing the measures for the reduction of GHG emissions from shipping sector.

JSA takes a strong position to:Support IMO initiatives to address further measuresOppose any regional measures which could cause unwelcome serious confusion, i.e. the distortion of the shipping market.

Environmental Issues

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II. Ballast Water ManagementIMO BWM convention

Will enter into force (EIF) on 8 September 2017.All vessels are required to comply with D-2 standard

New vessels after EIF >>> On deliveryExisting vessels >>> First IOPP renewal survey after EIF

US BW regulationsThe first USCG Type Approval certificate was granted to Optimarin Ballast System on 2 December 2016.All vessels calling at US ports are required to comply with the USCG BWM program.

New vessels >>> On deliveryExisting vessels >>> First Scheduled Dry-docking after January 2016

Environmental Issues

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III. Ship RecyclingEnvironmental Issues

IMO Hong Kong Convention (2009):Not yet entered into force

EU Ship Recycling Regulation (2013):Based on the provisions of the Hong Kong ConventionEU-flag ships must use the recognised facilities (‘EU list’)Beaching method yards are considered to be not recognised due to the EU’s own requirements.A financial instrument applicable to all ships calling at EU ports is planned to be introduced.

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Piracy

Close communications between the Japanese government and JSA are continuing to address the ongoing piracy crisis

Piracy by an armed group like a terrorist off the Yemeni coast

Piracy by Abu Sayyaf in Sulu and Celebes sea

Piracy by the armed group off the Nigerian coast

Concern with wider range of pirate activitiesAlthough the total number of piracy attacks has generally decreased, attacks on theWest-African coast are still occurring at a rate of 50 per year.

Patrol in the Gulf of Aden and Somali offingIn order to guard the vessels passing in the Gulf of Aden under the CTF151 operation, the Japanese government has despatched a self-defense naval force (a destroyer and two maritime patrol aircrafts - P-3C). From this January, the number of destroyers hasdecreased to one from two.

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20

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120

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2011 2012 2013 2014 2015 2016

Gulf of Aden

Somalia

Nigeria

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Movements for unfairly promoting the utilisation of nationally flagged vessels in international trade, for example:

Adoption of legislation promoting the use of nationallyflagged vessels for LNG exports followed by additionalattempts to introduce a cargo reservation measure on LNG (and crude oil) exports.

Possibility of adopting legislation restricting the carriage of Russian energy exports to Russian-flagged vessels

Aspiration to introduce a cargo reservation measure for nationally flagged ships

Protectionism and the Level Playing Field

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Movements for introducing the potentially excessive support measures for the national shipping industry, for example:

Escalating measures for strengthening the national shipping industry

(+ shipbuilding industry) and reducing those costs which might damage a healthy shipping market development.

Protectionism and the Level Playing Field

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Thank you very much for your kind attention