Singapore Government Press Release

Media Relations Division, Ministry of Information, Communications and the Arts,

MICA Building, 140 Hill Street, 2nd Storey, Singapore 179369

Tel: 6837-9666

 

SPEECH BY MRS LIM HWEE HUA, MINISTER OF STATE FOR FINANCE AND TRANSPORT AT THE OPENING CEREMONY FOR THE 27TH ANNUAL GENERAL MEETING OF THE FEDERATION OF ASEAN SHIPPERS’ COUNCILS (FASC) AND THE LAUNCH OF ASIAN SHIPPERS’ COUNCIL (ASC) ON MONDAY, 13 SEPTEMBER 2004, 9.30 AM AT THE REGENT HOTEL

 

 

Your Excellencies, Distinguished Guests, Ladies and Gentlemen,

 

I am happy to join you this morning at the opening ceremony for the 27th Annual General Meeting of the Federation of ASEAN Shippers’ Councils, and the Launch of the Asia Shippers’ Council.  I would also like to extend a very warm welcome to all the delegates.  To our overseas friends, I hope you will have the opportunity over the next few days to explore Singapore and experience our hospitality, sights and delectable cuisine.

 

Launch of the Asian Shippers’ Council

 

The maritime industry is one of the key drivers of the global economy. The industry has contributed significantly to the development of trade linkages between different parts of the world.  Adam Smith, often regarded as the father of modern economics, saw shipping as one of the stepping stones to economic growth as it is the only source of cheap transport which can open up wider markets to specialisation.[1]  Since the first steamships were built more than 200 years ago, the shipping industry has gone through many changes such as the bulk shipping revolution and the advent of containerisation.  Today, shipping remains the predominant mode of transport for goods.  Some 90% of the world’s trade is being moved by sea, translating to a volume of some 4,000 billion tonnes of cargo being shipped each year.

 

In the region, the outlook for the Asian maritime industry continues to be bright.  Based on the latest UNCTAD statistics, Asia accounted for the largest share, at 37% of the world’s tonnage of seaborne loaded goods.   With China’s and India’s robust economic and trade growth momentum, the demand for shipping and related services in Asia can only grow even further.  Shipbuilders in Asia are also reporting full order books until 2006 and some are building bigger ships to meet the growing demand, with many of the new container ships on order belonging to the super post-panamax class of 7,500 TEUs and above.       

 

It is clear that Asia is emerging as a manufacturing, trading and maritime powerhouse; hence it is timely and most meaningful to have a platform among Asian shippers to discuss issues of interest and importance to shippers in this region.  It is therefore my joy and privilege to witness the launch of the Asian Shippers’ Council, or ASC, this morning, which will help bring together Asian shippers to share their experiences and best practices.  The ASC will also serve as a forum for Asian shippers to discuss and present their views to the international community.  

 

Role of the Asian Shippers’ Council

 

The ASC will play an important role in complementing the multilateral trading system embodied by the World Trade Organization (WTO).  The multilateral trading system provides a sound and stable framework which ensures that goods and services flow freely between member nations, thus facilitating economic growth and enlarging the pie for everyone.  Going forward, I urge the ASC to continue to promote free trade and the efficient carriage of goods under the ambit of the WTO.  While it is important for Asian shippers to project a collective voice, it is also important that we continue working with other countries through international organisations like the WTO and the International Maritime Organization. Singapore is a strong supporter of this approach.  The concerns and problems affecting the industry require international solutions, and not unilateral decisions by individual countries or regional blocs. 

 

In this regard, the theme of this year’s AGM, ‘Global Shippers’ Forum’, is an excellent choice, as it reflects the global nature of trade and shipping.  It also echoes the calls from members of the international shippers’ community for shippers to work together on common goals such as trade facilitation within a multilateral framework.  With this in mind, the Federation of ASEAN Shippers’ Council has invited shippers from the Tripartite Shippers’ Meeting comprising of shippers’ councils representing Europe, America and Japan to participate in the discussions for the first time.  The confluence of shippers from Asia, Europe and the US in this AGM provides an excellent opportunity for the participants to discuss and exchange views on this topic. 

 

A Key Challenge Ahead – Supply Chain Security

 

Let me now move on to one of the key challenges confronting shippers today i.e. the issue of supply chain security.  In the post-911 environment, security has added a new dimension to the conduct of international trade.  What used to be considered as scenes from James Bond movies have now become very real threats to the safety and security of many countries.  For example, security experts have warned about the possibility of having weapons of mass destruction transported via containers and detonated when the ship arrives at the targeted port.  If we do not act to contain such threats, we will be allowing the terrorists to succeed in their attempts to disrupt global trade and curtail economic growth.

 

Thus far, maritime security initiatives have focused on ship and port facilities.  Maritime companies have invested substantial efforts in gearing themselves up to comply with the International Ship and Port Facility Security (ISPS) Code, which entered into force on 1 July this year.  In the case of Singapore, our port operators and shipping companies started planning and implementing the measures early. This enabled Singapore to be among the first few countries in the world to comply successfully and on time with the ISPS Code. 

 

However, the fight against terrorism does not end with the implementation of the ISPS Code.  Enhancing the security of our ports and ships is very important, but these measures will not be adequate unless we secure the entire supply chain in a holistic manner.  This begins with looking at how the cargo is assembled, packaged and placed into containers and how the containers are transported across the world, to the final discharge of the goods.  

 

An effective supply chain security framework would thus require the involvement and cooperation of all the stakeholders – manufacturers, shippers, freight forwarders, port operators, shipping lines and government agencies – to play their part in ensuring the security of the cargo.  Shippers, in particular, have a crucial role to play by ensuring the accuracy of their declarations and the integrity of their cargo during the loading process.    Given the global nature of trading and shipping, it is also important for different countries to cooperate in this area through the greater sharing of information and resources.  As the organisation representing Asian shippers, the ASC can contribute significantly to this process by initiating discussions among your members, and to take the lead in establishing standards and best practices on supply chain security.   

 

Conclusion

 

On this note, let me wish all of you a successful and fruitful meeting and hope that you will have an enjoyable time in Singapore.  It is now my pleasure to launch the Asian Shippers’ Council. 

 

 

 


[1] Adam Smith wrote, “As by means of water carriage a more extensive market is opened to every sort of industry than what land carriage alone can afford it, so it is upon the sea-coast, and along the banks of navigable rivers, that industry of every kind naturally begins to subdivide and improve itself, and it is frequently not until a long time after that those improvements extend themselves to the inland parts of the country.”   [The Wealth of Nations, 1776]