− Establishment of JAFSA −
As a country having followed a path of a peace-loving nation that genuinely aspires for peace and prosperity in the world, as an international-trade-oriented country since the end of the world war Ⅱ.
In the shipping industry, the recession became serious, affected by the declining freight rates due to the over capacity of ships that began in the 1970s with the weakening of the shipping conference system, the decreasing cargo volume from Japan due to changes in the industrial structure, and the sharp appreciation of the yen currency against the dollar.
The yen's appreciation had exerted significant impact on the ship agency business in Japan, whose main business is to booking sales on liner shipping.
Agencies business deteriorated since most of the revenues of shipping agents are commissions on dollar-based freight revenue, while all the general management expenses such as labor costs and rent payments are denominated in yen. Although each agent companies did desperate efforts for streamlining, most of the companies could not see prospective future.
Financially unstable shipping agency industry makes adversely affect on operation in Japan for foreign shipping companies.
To live up to expectation of foreign shipowners/principals, it was necessary to secure human resources, which required securing enough revenue for paying salaries for employment.
It is to be desired for both Japanese ocean carriers and foreign shipping companies to compete fairly and coexistance with in mutual prosperity in order for the further development of shipping business to and from Japan. To do so, it is absolutely necessary to have stable management of agents in Japan for foreign shipping companies.
The Ministry of Transport (at that time) also showed a strong interest in the situation of the shipping agent industry from the perspective of the need for ensure the stable development of ocean shipping business as a whole.
In order to break through the extremely difficult situation in the shipping agent industry in Japan, we decided to form the “Japan Association of Foreign-trade Ship Agencies” , JAFSA, and received the administrative guidance of the Ministry of Transport (at that time) when establishing.
The “Ship Agency Council of Japan”, SACJ, which operates agency works for tramp service, has been active for many years, but because of the majority of the members were also served as agency business for liners, it was decided to form a newly established association comprised of the liner and the tramp service agents by carrying out necessary activities within the organization.