Definition & Evolution of Shippers’ Councils
Shippers’ Councils have evolved into important institutions that represent, protect, and promote the interests of importers, exporters, and logistics stakeholders in the global maritime and transport industry
Definition and Purpose
A Shippers’ Council, referred to by the UN Convention on the Code of Conduct for Liner Conferences as a “Shippers’ Organization,” is an association or equivalent body established to promote, represent, and protect the interests of shippers.Where desired by national authorities, such organizations are officially recognized by the competent authority of the country whose shippers they represent.
The Rise of Collective Bargaining
The emergence of well-organized Shippers’ Councils was closely linked to the dominance of liner conferences, which historically controlled trade routes, fixed freight rates, determined sailing schedules, and imposed service conditions without considering the interests of shippers.Freight charges were often excessive, while shipping conditions were frequently unfavorable to cargo owners. This environment encouraged shippers to unite and establish councils capable of exercising collective bargaining power.
The movement gained major international recognition during the Third Session of UNCTAD in 1972, which called for the establishment of Shippers’ Councils worldwide. The principle behind this initiative was that liner conferences should consult with shippers, shipper organizations, and governments before taking decisions affecting trade and transport.
Global Evolution
- 1921 – United States: The American Association of Exporters and Importers (AAEI) was formed to represent shippers and later evolved into a major trade policy and digitalization advocate.
- 1950s – Europe: National Shippers’ Councils emerged across Europe, including the United Kingdom in 1955.
- 1963: European councils united to form the
European National Shippers’ Councils (ENSC), later renamed the European Shippers’ Council (ESC). - 1959 – India: India established one of Asia’s earliest
Shippers’ Councils under the Ministry of Transport and Shipping to address freight rate discrimination and shipping concerns. - 1970s–1980s: Global economic recessions led to excess shipping capacity, forcing shipping lines to reduce rates and allowing
freight charges to become more market-driven. - 2004: The Asian Shippers’ Council was established to integrate national councils and advocate for Asian shipping interests globally.
Regional Growth in Africa
African countries responded to the UNCTAD initiative by establishing national Shippers’ Councils to strengthen the voice of cargo owners and logistics stakeholders.
- West Africa: Through the Resolution of Douala, member states of the Maritime Organization of West and Central Africa (MOWCA) established national Shippers’ Councils.
- Eastern & Southern Africa: The Intergovernmental Standing Committee on Shipping (ISCOS), now the Maritime Organization for Eastern, Southern and Northern Africa (MOSENA), championed the establishment and revival of councils across the region.
- 1991: Tanzania revived its Shippers’ Council.
- 2008: Kenya, Uganda, and Zambia revived or established
their national councils.
The Birth of the Shippers’ Council of South Sudan
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 institution representing the interests of shippers. This initiative led to the establishment of the Shippers’ Council of South Sudan in 2015.
In 2025, the Council joined regional partners to establish the Federation of Eastern, Northern and Southern Africa Shippers’ Councils (FENASCO) Operating under MOSENA, FENASCO represents the interests of importers, exporters, and logistics stakeholders across the wider region. “Strong Shippers’ Councils create a unified voice for cargo owners, promote fair trade practices, and strengthen regional and global logistics systems.”
