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Shipowner cautious on shipper council

Asian shipowners have noted with great interest the establishment of the Asian Shippers' Council (ASC) with great interest.
 
The formation of the Asian Shipper Council, representing the interests of importers and exporters in the region is expected to emerge as a countervailing body to the increasing strength of shipowners, who especially in the current market condition, appear to have an upper hand by pushing increases in freight rates despite protests by shippers.
 
The Asian Shipowners Forum, representing shipowners associations in Asia, which met in Singapore the weekend, nevertheless welcomed the regional shippers body that could wield considerable influence.
 
ASF said recognising that the specific commercial issues should be discussed between relevant shippers' bodies and authorised carrier agreements, the delegates agreed that it would seek appropriate ways to establish desirable and constructive relations between shippers and carriers in Asia through sincere and amicable dialogue.
 
On the prevailing strong demand in the transpacific trade, which ASF expects to sustain over the next few years, strong concerns were expected about increasing cost factors mainly due to the lack of sufficient infrastructure such as, heavy port congestion especially on the US West Coast, increasing charges of harbours , railways and truckers.
 
The owners also felt feeders, shortage of containers because of high steel prices, soaring bunker prices, the upsurge in charter rates and rising new building prices could impact on the otherwise buoyant market.
 
The shipowners said the unprecedented increasing operating costs posed a massive challenge to carriers' ability to provide the high quality and stable services.
 
Member lines were urged to make their utmost efforts to articulate the significance and impacts of these problems to the public and government agencies that in particular the development of new transportation infrastructure would be urgently required for the smooth flow of the global supply chain.

               

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