Page 49 - Practical Design Ships and Floating Structures

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(4) Shipping companies are building a global information network shared by dflerent companies
all over the world.
As we all know, the New Economy is based on the information technology. It is the high-developed
information technology that gives birth to the New Economy. The shipping companies should also
harvest the benefit that IT brings. The shipping companies should attach more importance to the
modernization of the information system, because a modernized information system will help shipping
companies make better use of resources and become more competitive.
The Japan Maritime Research Institute recently conducted a general inquiry on the development of
information system. About 20 liner companies responded to the inquiry. The resuit showed that 23% of
the companies had built up the central information-process system, 31% had built up regional
information system, and the remaining 46% had both systems. 85% companies provided booking and
inquiring service via Internet. 3 1 % had yield management system, other companies were developing
such systems. So information technology has become a key measure for shipping companies to cut
management cost, improve service quality, and get competitive edge.
(5) Trends of cooperation will be further developed from slot chartering to setting up alliance.

There have been tens of major mergers in international shipping industry recent years, such as P&O
and NEDLLOYD in September of 1996, NYK and SHOWA in June of 1998, MOL and NAVIX in
April of 1999. Some major acquisitions such as APL by NOL in April of 1997, and Sealand by Maersk
in July of 1999.
(6) The role of liner conferences are. gradually decreasing

The shipping policies of EU and US tend to be more and more liberalized, rendering a heavy blow to
liner conferences. The emergence of Asian liner shipping carriers poses tremendous pressure on
traditional liner conferences. And the fast development of global alliances also leaves liner conferences
less active. You can see the changes in recent years from the evolution of liner conference
organizations on the East-West trunk services.
The FEFC, based in London, was divided into 3 parts in 1992, namely MJEFC, WRA and EMA. In
1994, Mediterranean Westbound Liner Conference became independent, with JMFC of
Japan/Mediterranean trade and AMRA of AsiaMediterranean trade as parts of it. On the Far
EastNorth America trade, liner conferences have lost their binding power as freight cartels as a result
of the implementation of OSRA in May 1999, which allows ship owners to form service contract with
shipper. Therefore, many freight conferences have decided to dissolve. Up to now, three conferences of
ANERA, TWRA and Intra-America conference have stopped operation, and JUEFC has decided to
stop setting price. TSA and WTSA nevertheless are still playing an active role.

(7) Shipping industry will be more and more liberalised, and the policy of free port will be
pursued by quite a number of countries.

With the further development of world economic globalisation and trade liberalisation, international
shipping will be further opened up, which in turn will prompt the adjustment of shipping policies.
Traditional ways of protection have found their way in other forms, e.g., indirect hidden supporting
measure vs. direct economic subsidy, and technical and environmental measures vs. administrative
protection.
“Free port” is a highly efficient international trade policy aimed at promoting trade, developing