Japanese Shipping and Challenges for the Shipping Industry
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1 Japanese Shipping and Challenges for the Shipping Industry Hiroyuki Maekawa President Japanese Shipowners Association INTERTANKO Annual Tanker Event May 2009, Tokyo Contents 1. Japanese Shipping 1-1. Japan s Import Dependency Ratio in Major Resources 1-2. Trade Volume of Japan and Ratio of Seaborne Trade 1-3. Japanese International Merchant Fleet 1-4. Loading Ratio of Japanese International Merchant Fleet - Japan s Imports and Exports 2. Challenges for the Shipping Industry 2-1. JSA s AGM Resolution 2008 International Shipping (Gist) 2-2. Major Challenges (1) GHG 2-3. Major Challenges (2) Piracy 2-4. Major Challenges (3) Ship Recycling 1
2 1-1. Japan s Import Dependency Ratio in Major Resources Coal Crude Oil Natural Gas 100% 99.6% 96.4% Iron Ore Wool Raw Cotton 100% 100% 100% Soy Beans Wheat Salt 95% 86% 80% Source: Food Balance Sheet (2007), White paper on Energy (2008) and White Paper on Forest and Forestry (2008) Trade Volume of Japan and Ratio of Seaborne Trade Trade Volume of Japan Unit:1,000 tons Yea Export Import Total (Export/Import) r Seaborne Seaborne Seaborne Total Ratio Total Ratio Total Trade Trade Trade Ratio , , % 817, , % 953, , % , , % 816, , % 962, , % , ,867 % % % Source : Japan Tariff Association Seaborne Trade of Japan by Commodity 52.2% Export 2007 (150,220 thousand tons 0.6% Source : MLIT of Japan 1.1% 24% 5.5% 6.4% 10.6% St eel Cement Machinary Passenger Car Electric goods Fertilizer Ot hers 25.0% Import 2007 (813,843 thousand tons) 0.5% 1.7% 8.2% Crude Oil 2.6% 62.0% Dry Cargo Crude Oil LNG LPG Fuel oil Other liquid cargo *Dry Cargo: Iron ore, Coal, Bauxite, Timber, Chip, Wheat, Corn, etc 3
3 1-3. Japanese International Merchant Fleet Japanese International Merchant Fleet by ship type Oil Tanker 20.1% 6.9% 5.2% 2.0% 0.1% 41.2% 11.0% 13.5% Percentage of tonnage by ship type Ore/ Bulk (822 Vessels / 38,315,000GT) Container (262 Vessels / 10,228,000GT) PCC (317 Vessels / 12,519,000GT) Other Dry Cargo (396 Vessels / 6,434,000GT) Oil Tanker (249 Vessels / 18,718,000GT) Chemical Tanker (168 Vessels / 1,855,000GT) LPG/LNG LNG Tanker Tanker (87 Vessels /4,814,000GT) Other Tanker (4 Vessels / 47,000GT) Total (2,305 Vessels / 93 million GT ) 1. As of 30 June Source: JSA Loading Ratio of Japanese International Merchant fleet - Japan s Imports and Exports (Year) Japanese Fleets 33.7% Japanese Fleets 37.9% Export Foreign Fleets 66.3% Foreign Fleets 62.1% (Unit: tons) 134, , Japanese Fleets 37.7% Foreign Fleets 62.3% 150, ,000 40,000 60,000 80, , , , ,000 Import 64.9% Fleets35.1% Japanese Fleets Foreign % 38.2% Japanese Fleets Foreign Fleets % Fleets35.2% Japanese Fleets Foreign , , , , , , , , , , , ,843 Source : MLIT of Japan Japanese Shipping Industry plays a vital role in sustaining the economy and people s lives in Japan 5
4 2-1. JSA s AGM Resolution International Shipping (Gist) - Securing safe navigation of vessels and promoting environmental preservation - Strengthening international shipping competitiveness Smooth implementation of tonnage-based tax system - Appropriate response to international issues Maintaining antitrust immunity system for liner shipping Expressing Japanese shipowners views via international / regional organisations such as ICS, ISF and ASF Taking measures against terrorist / piracy attacks - Appropriate response to seafarers issue Early abolishment of manning requirement for Japanese-flagged vessels Establishment of systems to nurture Japanese marine engineers etc Major Challenges (1) - GHG To agree a new framework for the post Kyoto Protocol UNFCC C COP13 Dec 2007 Indonesia COP14 Dec 2008 Poland COP15 Dec 2009 Denmark New framework : From 2013; Acceptance stage for New Framework the new frameworkfor GHG Reduction Report development at IMO Report development at IMO IMO MEPC57 Mar 2008 GHG Interim Meeting Jun 2008 MEPC58 Oct 2008 GHG Interim Meeting Mar 2009 MEPC59 Jul 2009 General Assembly Nov 2009 MEPC60 Mar 2010 MEPC61 Oct 2010 Begin with substantial deliberations -Develop Draft Revision of MARPOL Annex VI - Begin with discussion on market-based instruments It is important that the GHG reduction measures for the industry should be applied globally to all vessels, regardless of their flags, without distorting competition in the market. Improving energy efficiency through measures such as the design index for ships would be the most effective way to reduce the GHG emissions from international shipping. IMO, the primary international organisation with an expertise in shipping, is the most appropriate forum to discuss the GHG issues for international shipping. 7
5 2-3. Major Challenges (2) Piracy Piracy Attacks in 2008 World 293 Gulf of Aden and Somalia 111 Fleets Transiting the Gulf of Aden in 2008 World Approx. 20,000 JSA members 2,103 Source: Lloyd s List Recent Developments in Japan 13 March 2009 Defense Minister issued a decree on Maritime Patrol Operations 14 March 2009 Maritime Self-Defense Force (MSDF) dispatched two escort warships to the Gulf of Aden 30 March 2009 The escort warships begin their operations Major Challenges (3) Ship Recycling Recent Developments Ship Recycling Convention will be adopted at the Diplomatic Conference being held in Hong Kong from 11 to 15 May The size of the world merchant fleet as of the end of the 2007 was 775 million GT*, 15% (115 million GT*) of which was over 25 years old. * Source: Lloyd s Register of Shipping WORLD FLEET STATISICS Early ratification of the convention by IMO members is important to ensure its swift implementation for the purpose of promoting environmentally sound ship recycling of obsolete ships. 9
6 Thank you for your attention
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