Shipowners criticised for not funding anti-piracy effort
Shipowners could not use the global economic crisis as an excuse for not funding anti-piracy efforts in the Malacca Strait, Nippon Foundation chairman Yohei Sasakawa has said.
The Indonesian coastguard watching the Malacca Strait
Mr Sasakawa said shipowners needed to contribute more to the voluntary fund for navigational safety in the region.
He hinted at a mandatory system in future if the current tactics in the region were ineffective.
While Mr Sasakawa said he was satisfied with the progress of the 12-month-old Aids to Navigation Fund for the Malacca and Singapore Straits, he highlighted the lack of direct contributions from shipowners.
“I am not fully satisfied that (the message) has really got to all the shipping companies it should have,” Mr Sasakawa told Lloyd’s List.
He dismissed the idea that the global economic downturn meant shipowners would be unable to pay.
“Two years ago there was a boom in the maritime industry, but nobody paid,” he said.
“They are looking for excuses.
"A simple US$100 is not going to impact on the profit and loss of a shipping company.”
To date, apart from contributions by a number of user states, the only industry user contributions have come from the Japan Shipowners Association and the roundtable of shipping organisations comprising Intertanko, Intercargo, BIMCO and the International Chamber of Shipping indirectly through a donation from the Middle East Navigation Aids Service.
“Members of the round-table and the JSA have shown an understanding of the importance of safety of navigation and of contributing from a corporate social responsibility point of view,” he said.
“But it needs to go still further, as there are many shipping companies that have not yet been collaborative.”
Shipowners have been largely united in their opposition to the concept that they should pay directly towards the cost of safety of navigation in the Malacca Strait, a response that Mr Sasakawa said was outdated in the modern world and which drove the establishment of the voluntary fund in the first place.
A payment of US$100 per vessel for each transit of the strait could generate $18m, based on 90,000 vessels using the waterway a year, he said.
“This is not going to impact on the management, nor the finance of the shipping companies and it is not going to add anything the freight charge shippers pay,” Mr Sasakawa said.
While the voluntary scheme was performing well, it was seen as the first step in an effort to get all users to contribute directly, he said.
“If it goes well, we will see a situation where we can enforce it or semi-enforce it in the future,” he said.
For users to pay across the board, transparency in the use of funds would be a key issue, he added.
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