Introduction
The Singapore National Shippers’ Council (SNSC) was established in 1972 to advance the interests of local shippers and maintain competitive freight rates for them. As the SNSC is the second shippers’ council to be established in Asia after Hong Kong, its formation led to other countries in Southeast Asia following suit soon after.1
Background
In the early 20th century, exporters and importers had to accept the shipping rates set by associations of shipping companies known as shipping conferences, the largest of which was the Far Eastern Freight Conference (FEFC). Because these shipping conferences monopolised the trade route and used a contract system to lock in their customers, freight charges were 20 to 50 percent higher than independent carriers for exporters in Singapore.2 In addition, shippers put up with penalties such as loss of rebates for breach of contract, arbitrary decisions on freight rates, and various surcharges.3
Collective action
In 1964, the Straits/New York Conference (SNYCON) attempted to impose a general rate increase of 11 percent. Rubber exporters in Singapore could not afford higher freight rates as they were already struggling with declining rubber prices and competition from synthetic rubber. Hence, failing to dissuade SNYCON from raising its prices, the local exporters banded together, along with rubber shippers from Malaysia, to charter their own shipping vessel.4 This first collective action successfully prevented rate increases by SNYCON and FEFC for the rubber shippers but not those of other commodities.
In 1967, the issue of conference freight rates was discussed at a general meeting organised by the Singapore Chinese Chamber of Commerce (SCCC). The meeting involved about 160 representatives from 62 trade associations, and representatives from the Malay Chamber of Commerce, the Indian Chamber of Commerce and the Singapore International Chamber of Commerce.5 By the end of the meeting, the Shipping Freight Working Committee (SFWC) was formed to fight for fair rates and conditions and abolish the conference contract system. The SFWC invited the Associated Chinese Chambers of Commerce of Malaya (ACCCM) and other Chinese trade associations in Malaysia to participate in a campaign to break the FEFC’s monopoly. The ACCCM agreed and also encouraged its members to join the campaign.6
In late 1967, the FEFC announced a 12.5 percent surcharge, citing as a reason the devaluation in pound sterling, which was the currency of the tariff rate quotation. As charges were payable in pound sterling, the Rubber Association of Singapore regarded the surcharge as unjustified. In response, 95 percent of the rubber traders in Singapore and Malaysia terminated their contracts with FEFC and sought alternative ships operated by other countries such as Russia, East Germany, Italy and Japan.
In 1971, the SCCC sent a delegation to China to negotiate for vessels to ship Singapore’s goods at much lower rates than those of the FEFC. After its second trip in December 1971, Chinese ships began calling at Singapore and Malaysia in early 1972 to pick up goods for shipment to Europe. The SCCC set up the Freight Booking Centre to process bookings for Chinese vessels and secured alternative ship operators from countries such as East Germany, Russia, Italy, Bulgaria and Japan.7 The SFWC suggested to the then finance ministry’s trade division to form a shipper’s council as a government body, but the idea was turned down. Eventually, the National Shippers’ Council was inaugurated on 12 September 1972 as a private organisation with key officials from the trade division serving as advisors to the council.8
Leadership and consolidation
The SNSC’s first chairman was Tan Eng Joo, a Chinese community leader and businessman, who with his uncle Tan Lark Sye and rubber magnate Lee Kong Chian formed the Rubber Association of Singapore in 1964. Tan Eng Joo was also elected chairman of the Singapore Chinese Chamber of Commerce and Industry in 1989.9
The deputy chairman was businessman Tan Keong Choon. He was chairman of the National Parks Board and Singapore Science Centre, a council member of the Hokkien Huay Kuan, and the director at Chung Khiaw and United Overseas Banks.10 Both men were also members of the SFWC.
A few months after the inauguration, Tan Eng Joo and Tan Keong Choon, together with the managing director of the Freight Booking Centre, went to China in April 1973 to negotiate for more cargo shipping space from the China National Chartering Corporation, as freight rates had increased again.11 The SNSC also took over the operation of the Freight Booking Centre from the SCCC in 1973, so that it could be developed to better serve Singapore’s interests.12
At the time of the SNSC’s inaugural meeting, it had 88 members.13 While not all exporters, importers and manufacturers in Singapore had joined the council immediately upon its formation, membership numbers gradually increased, and by 1974, within two years of its formation, the SNSC had more than 200 members.14
The SNSC also works with other shippers’ councils, including the Federation of ASEAN Shippers’ Council formed in 1974, to better represent the interests of shippers to well-established organisations like shipping conferences, transport companies, port authorities and governments.15
Author
Joanna Tan
References
1. June Lim, Evolution of Shippers' Councils in Singapore and Asean (Singapore: Singapore National Shippers’ Council, 2002), 17. (Call no. RSING q387.544095957 LIM)
2. Liu Hong and Wong Sin-Kiong, Singapore Chinese Society in Transition: Business, Politics, and Socio-economic Change, 1945–1965 (New York: Peter Lang Pub., 2004), 254. (Call no. RSING 959.5704 LIU-[HIS])
3. Lim, Evolution of Shippers' Councils, 24, 51.
4. Lim, Evolution of Shippers' Councils, 21; “Rubber Faces the Synthetic Threats with Confidence,” Straits Times, 31 August 1965, 7. (From NewspaperSG)
5. Liu and Wong, Singapore Chinese Society in Transition, 255.
6. Liu and Wong, Singapore Chinese Society in Transition, 255–56.
7. Singapore National Shippers’ Council, 10th Anniversary: 1972–1982 (Singapore: The Council, 1982), 48–51 (Call no. RSING 387.544095957 SIN); Lim, Evolution of Shippers' Councils, 33; “Shipping Surcharge Unfair, Says Rubber Trade Chief,” Straits Times, 26 November 1967, 13; “Rubber Shippers End Contract with FEFC,” Straits Times, 2 January 1969, 6. (From NewspaperSG)
8. Lim, Evolution of Shippers' Councils, 23–29, 91.
9. Isabel Ong, “Tan Eng Joo,” Singapore Infopedia, published August 2009.
10. Isabel Ong and Sharen Chua, “Tan Keong Choon,” Singapore Infopedia, published 2016.
11. “Chamber to Ask China for Another 20 Ships,” Straits Times, 1 April 1973, 9; “China To Provide More Cargo Space For Shippers,” Straits Times, 22 April 1973, 7. (From NewspaperSG)
12. Lim, Evolution of Shippers' Councils, 30–34, 37.
13. Singapore National Shippers’ Council, 10th Anniversary, 56.
14. Liu and Wong, Singapore Chinese Society in Transition, 256.
15. Lim, Evolution of Shippers' Councils, 37–41, 61–66.
The information in this article is valid as of October 2022 and correct as far as we are able to ascertain from our sources. It is not intended to be an exhaustive or complete history of the subject. Please contact the Library for further reading materials on the topic.
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