Indian government to consider abolishing liner immunity
An Indian government commission has asked the country's Ministry of Shipping to end shipping conferences and allow shipping lines to quote independent tariffs to customers.
The Business Standard reported Friday that the Competition Commission of India had asked for the examination of liner conferences and their impact on Indian shippers. The move follows the European Union's decision last fall to end liner antitrust immunity in 2008, as well as a recent decision by the Chinese government to heavily scrutinize charges and tariffs emanating from liner conferences. U.S. antitrust officials are also eyeing the efficacy of the liner conference setup.
The CCI decision is a huge fillip to the Asian Shippers' Council, which is rallying support from a diverse member base of 18 nations in trying to put an end to liner conferences.
'As part of our advocacy work, our advice to the shipping industry would be to examine the nature of the conferences in the light of the Competition Act and, if necessary, bring about changes in conformity with the Act,' the Business Standard quoted CCI member Vinod Dhall.
'Dhall also said the issue would be looked at after the enforcement sections were notified by the central government,' the story said. 'If the shipping conferences were found to be engaged in fixing rates and prices, they would be on the wrong side of the law. Under the act, if any cartel is found violating norms, the members face a penalty of up to 10 percent of the turnover or three times the 'illegitimate' profit earned.'
Indian government to consider abolishing liner immunity
