Joint Shippers’ Declaration

Joint Shippers’ Declaration

Canadian Shippers’ Council

The National Industrial Transportation League

European Shippers’ Council

Japan Shippers’ Council

Korean Shippers’ Council

Philippines Shippers’ Bureau

The Hong Kong Shippers’ Council

The Thai National Shippers’ Council

The Federation of ASEAN Shippers’ Councils

The 2002 Tripartite Shippers’ Meeting

September 12-14, 2002

New Orleans, Louisiana – USA

The ninth annual Tripartite Shippers’ Meeting in New Orleans, Louisiana included the above-named organizations representing the three major trading areas of the world – Asia, Europe, and North America. The challenges of achieving a competitive and efficient world freight transportation system were complicated over the past year by the events of September 11, 2001 and the potential threats they pose to international trade.

Port/Maritime Security

The Tripartite Shippers’ Group (TSG) agrees that new security measures are needed to ensure that the international ocean freight transportation system is protected from acts of terrorism. Beyond terrible loss of life and property, a terrorist incident directed at the world’s ocean transportation system would result in interrupted vessel service, port closures and delays to cargo. Government and industry leaders, including shippers, must work together in fashioning procedures that will be effective and efficient without impeding commerce. In developing new security safeguards, policy makers must be careful not to unnecessarily compromise or undermine the efficiency and reliability of the transportation industry or incur unnecessary costs. Every effort must be made to keep the international ocean transportation system protected and in a position to serve world trade.

It is with these principles in mind that the TSG supports:

Facilitation of international security standards through such bodies as the World Trade Organization, the World Customs Organization, the International Maritime Organization, and others, so as to result in a global security system;
Phasing in new security mechanisms to permit better coordination among all parties in the freight transportation industry, including overseas suppliers, non-vessel operating common carriers, marine terminal operators; shippers, trucks, railroads, ocean carriers, and others;
Government security regulations that clearly and specifically set forth the requirements for compliance by the freight transportation industry at origin, destination, and, indeed, throughout the supply chain;
Consideration of “known shipper” programs that result in the classification of low, medium and high risk cargoes, without compromising sensitive commercial information; and,
Use of new technologies which would permit non-intrusive inspections of containers.

International Maritime Regulatory Reform

The TSG reaffirms support for a free and competitive ocean liner transportation system that recognizes that pricing should be individually determined by each carrier based on the competitive market and individual carrier’s cost of operation, including a reasonable return on investment.

The TSG agrees with the conclusions contained in the Organization for Economic Cooperation and Development’s (OECD) report entitled, “Liner Shipping Competition Policy,” which found that antitrust immunity in the area of joint pricing does not serve a public purpose, and that national governments should consider removing the privilege for liner conferences and discussion agreements. Specifically, the TSG supports the report’s findings that it found no convincing evidence “that the practice of discussing and/or fixing rates and surcharges among competitive carriers offers more benefits than costs to shippers or consumers.”

Recognizing the success of the TSG to work together in communicating the views of shippers to the OECD, the participants of 2002 TSG agreed to continue this spirit of cooperation and to coordinate efforts over the next year as the European Commission and other national governments undertake their own reviews of liner competition laws and regulations. The TSG urges the European Commission and national governments to proceed as expeditiously as possible.

Surcharges and Ancillaries

Terminal handling charges, other surcharges and ancillaries should be transparent and should reflect actual incurred costs, and should not be used as a means to achieve revenue increases. The TSG supports the OECD recommendation that “shippers and carriers should always have the option of freely negotiating rules, surcharges and other terms of carriage on an individual and confidential basis.” The TSG believes that “voluntary guidelines” developed by carrier discussion agreements should not be used to implement collective pricing and service strategies.

International Air Transport Association “Resolution 502”

The TSG strongly opposes the International Air Transport Association (IATA) Resolution 502 which is targeting low density cargo. The proposal would change the volume to weight relationship from the present 6,000 cubic centimeters per paid kilogram to 5,000 cubic centimeters per paid kilogram.

The TSG recognizes that shippers have designed and constructed their packaging and production in reliance upon the current standard in effect since 1981. The procedure used to advance this proposed change through IATA is directly contrary to competitive business practices. In the final analysis, Resolution 502 is highly anticompetitive and is inconsistent with national policies of countries to maximize competitive forces wherever possible.

With these principles in mind, the TSG delegates agreed to issue a joint letter transmitting these concerns to IATA, and pledged that each council should communicate its opposition to Resolution 502 to individual carriers and, where appropriate, to its national government.

Ocean Cargo Liability for Loss and Damage

The TSG believes that trade by sea would be facilitated by a uniform, international ocean cargo liability regime, updated to take into account modern developments in transportation and logistics. The TSG notes that a Working Group of the United Nations Commission on International Trade Law (UNCITRAL) is now considering a draft instrument on transport law, which includes provisions that comprehensively address issues relating to ocean cargo liability. The TSG commends these efforts, and urges timely development by UNCITRAL of an appropriate and balanced regime for consideration and approval by the trading nations of the world.

The TSG also supports promotion of an open system of world trade, finance and investment in which business can flourish and contribute to economic growth, human welfare and protection of the environment.

None of the current regimes take full account of modern developments in international trade such as containerization, multimodal transport, just-in-time delivery and e-commerce. With these deficiencies in mind, we would like to call attention to the September 25, 2001 Joint Statement of agreed principles on a cargo liability regime reached by The National Industrial Transportation League and the World Shipping Council. The TSG believes that such efforts by major stakeholders to reach consensus are most desirable and commendable. In developing a new, uniform international ocean transportation cargo liability regime, TSG supports a structure consistent with this Joint Statement that would:

· Apply to international ocean cargoes, including port-to-port and multimodal shipments, as well as the transportation activities of other parties performing the duties of the carrier in the intermodal chain, including third party service providers;

· Increase the liability limitation to a level that realistically reflects the value of the lost or damaged shipment, and allows for adjustment over time.

· Update and clarify the burdens of proof for all parties and defenses of a carrier against whom a claim is made, including elimination of the error navigation defense;

· Permit parties entering into customized ocean transportation contracts to agree to depart from the requirements of the international ocean transportation cargo liability regime; and,

· Establish procedures and provide clarity of rights and obligations regarding cargo liability to minimize the burden on international trade resulting from excessive litigation.

Tripartite Information Sharing

The TSG reaffirmed the need for further development and refinement of information exchanges. Modern communications technology provides shippers with the means to share ideas on issues, important events and developments that affect the free flow of commerce.

The resources to accomplish these goals are already in place through individual websites hosted by the respective shippers organizations as well as the international website known as the “Global Shippers’ Network.” www.globalshippersnetwork.net

The TSG members pledge to provide through the Global Shippers’ Network and their respective websites regular local and regional news updates with the objective of helping to advance initiatives important to the world shipper community.

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Communication and cooperation on policy matters again proved successful during the 2002 meeting of the TSG. The delegates reaffirmed their commitment to work together, and, in adopting the principles and policies in this resolution, believe that significant benefits will result to international world trade.

Adopted in New Orleans, Louisiana – USA

September 14, 2002