Definition and Purpose
A Shippers’ Council—referred to as a “shippers’ organization” by the UN Convention on the Code of Conduct for Liner Conferences—is defined as an association or equivalent body that promotes, represents, and protects the interests of shippers. When desired by national authorities, it is recognized in that capacity by the appropriate authority of the country whose shippers it represents.
The Rise of Collective Bargaining
The creation of well-organized Shippers’ Councils was closely tied to the existence of liner conferences. Historically, these conferences monopolized trade routes, set common freight rates, fixed sailing frequencies, and determined general conditions of service without regard for the shipper. Rates were often exorbitant, and service conditions were frequently “shipper-unfriendly.”
This environment propelled shippers to unite and form councils to gain the collective bargaining power needed to counter liner conferences. The movement gained significant momentum during the third session of UNCTAD in 1972, which called for the creation of Shippers’ Councils. This was based on the principle that liner conferences must consult with shippers, shipper organizations, and concerned governments—including those in landlocked countries—before making decisions that affect their interests.
Global Evolution
Prior to the UNCTAD resolution, a few shipper organizations already existed. For example, the American Association of Exporters and Importers (AAEI), formed in 1921, evolved from merely representing shippers in dealings with liner conferences to influencing trade policies. Today, it prepares members for shifting international regimes and leads initiatives in digitalization and the adoption of artificial intelligence.
As liner conferences became more structured, more Shippers’ Councils emerged in the 1950s at the national level in Europe (e.g., in the UK in 1955). Eventually, these joined to form the European National Shippers’ Councils (ENSC) in 1963, later renamed the European Shippers’ Council (ESC).
In Asia, India was among the first to institute a Shippers’ Council in 1959 under the Ministry of Transport and Shipping. Its mandate was to represent shippers in discussions with shipping lines to harmonize and adjust anomalous or discriminatory freight rates.
Following the recession of the 1970s and 1980s, shipping lines were left with more capacity than demand, forcing them to revise rates to levels desired by shippers and allowing freight rates to be governed by market forces.
In 2004, the Asian Shippers’ Council was created as a continental agency to integrate all national councils under one entity and advocate for Asian shipping issues at a global level.
Regional Growth in Africa
West African states responded to the UNCTAD call through the Resolution of Douala, which required the establishment of Shippers’ Councils in the member states of what is now the Maritime Organization of West and Central Africa (MOWCA).
The Intergovernmental Standing Committee on Shipping (ISCOS)—now the Maritime Organization for Eastern, Southern, and Northern Africa (MOSENA)—has, since its inception, driven the agenda of establishing and reviving Shippers’ Councils. Councils were revived in Tanzania in 1991, and in Kenya, Uganda, and Zambia in 2008.
Following consultations with the Ministry of Transport of South Sudan, the South Sudan National Chamber of Commerce, Industry and Agriculture, and other stakeholders, a resolution was reached in 2013 to establish a national body. This led to the birth of the Shippers’ Council of South Sudan in 2015.
In 2025, the Shippers’ Council of South Sudan joined other councils in the region to form a unified body: the Federation of Eastern, Northern and Southern Africa Shippers’ Councils (FENASCO). Operating under MOSENA, this federation represents the interests of importers, exporters, and logistics stakeholders across the entire region.