GSF Meets to Discuss Asian Regulatory Reform

The Global Shippers’ Forum met this month primarily to discuss regulatory reform of the ocean shipping industry in Asia. They noted the advances in competitive practices that have been in place in Europe and the regulatory reform that has just begun to unfold in the US. They are hoping that these events will put pressure on Asia to implement changes of their own and push the international shipping industry in the right direction. They intend on introducing an Asian maritime regulatory reform campaign and drawing attention to the fact that Asian shippers are currently offered little or no protection by applying anti-trust laws.



The GSF meeting reports say that "a variety of unacceptable shipping practices, ranging from the imposition of abrupt and opportunistic rate increases and surcharges, cargo ‘roll-overs,’ the limitation of shipping capacity and a general lack of adherence to rate agreements and contractual arrangements on an unprecedented global scale."



Freight carriers are quick to point out that they had no choice in the matter and that the rate increases were not opportunistic. Their volumes had been on a steady decline for over two years and they had to adapt to stay afloat. The GSF said "this has resulted in major disruption to global supply chains, often resulting in delayed deliveries especially for time sensitive shipments." They "have acted as a barrier to the development of international trade at a time when fostering global commerce is vital to economic recovery and supporting employment in response to the worst financial and economic crisis since the 1930s."



Disruptions in the flow of international trade were bound to occur, and everyone knew as they watched the ocean shipping industry struggle, that something had to be done. It was obvious to some even before the decline in the economy that regulations needed to come into line on a global scale.



Changes are underway and the GSF is optimistic. The global economy has already started to recover with third quarter earnings better than they’ve been in two years. "The change in the dynamics of the market is opening up opportunities that would have not been there if we had the status quo" of pre-recession times, Chief Operating Officer John Carr of MIQ Logistics said.



Container shipping volumes and ocean freight rates have improved bringing many shippers back into the proverbial black. Business lines have increased their volumes as the auto industry has shown rapid growth. Many more improvements are expected to be seen as we begin to recover from the recession and align global strategies to cut the path for the future.