Japanese Shippers Call On Us Body To Drop Sanctions

Three Japanese shipping firms have called on the US Federal Maritime Commission (FMC) to drop a plan to impose sanctions over their port practices, an official of Kawasaki Kisen Kaisha, one of the firms involved, said.

The plea was made in a joint petition in Washington on Wednesday ahead of a FMC decision on the sanctions, expected next week.

The FMC, angry at what it says are costly and discriminatory port practices, is considering slapping a $100,000 surcharge on ship operators Kawasaki Kisen, Mitsui OSK Lines Ltd and Nippon Yusen KK every time they stop at a US port.

"The petition says the FMC argument is not based on credible facts, and therefore any sanctions based on inconclusive evidence should not be carried out," the Kawasaki official said.

 

The FMC has charged that Japans Transport Ministry discourages applications for cargo handling licences and that the need to consult the Japan Harbour and Transport Authority (JHTA) for changes in all vessel operations, no matter how minor, gives the JHTA effective control over port business in Japan.

Washington says Japanese port costs are the highest in the world, up to three to five times greater than other ports in Asia.

If changes were to be mad, port costs could be reduced by as much as 20 percent, the FMC said.