Calls grow for worldwide ban on container conferences
December 12, 2011
A powerful coalition of shippers from around the world is lobbying hard for a regulatory overhaul of the global container trades, following the lead taken by the EU three years ago.
The recently-formed Global Shippers Forum is urging other countries to remove shipping lines’ antitrust immunity from local competition law.
In its annual report, the GSF says reform is being strongly resisted by carrier interests, such as the International Chamber of Shipping and World Shipping Council.
“Their policy is to defend the conference system in those parts of the world where conferences are permitted,” the GSF said.
“While the shipping industry’s position is understandable, bearing in mind the unique privileges and advantages antitrust exemption provides the shipping industry, antitrust exemption cannot be sustainable in the medium to long term.”
Rather than continuing to “defend the indefensible”, the shipping industry “should move on and embrace a new pro-competition paradigm, where market efficiency, innovation and competitiveness are determined by free and fair competition in the provision of liner shipping services”, the GSF argued.
The forum was set up in July by a number of major shipper groups, including the National Industrial Transportation League, Asian Shippers’ Council, Union of African Shippers’ Councils, the Canadian Industrial Transportation and the UK Freight Transport Association.
Altogether, the GSF represents around 40 national shipper groups, although the European Shippers’ Council decided not to join.
The GSF’s Secretary General, Chris Welsh, waged a long campaign against the conference system before it was finally outlawed in Europe in October 2008.
Fresh moves are now afoot in Washington to introduce a Bill that would prohibit conferences and discussion agreements in the US. The Federal Maritime Commission is due to publish a study on the impact of the EU conference ban in early January.
With approximately half the world’s liner shipping markets now regulated under the normal application of competition and antitrust laws, following the EU repeal of the liner conference block exemption, the GSF’s campaign is now focused on extending this “much-needed reform” to other parts of the world, notably to Asia and North America.
“There are increasing signs of governments’ acceptance of the importance of developing common global competition rules,” the GSF said.
Courtesy of IFW
