ESC praises liner regulation extension

ESC praises liner regulation extension    The European Shippers' Council said Tuesday it welcomed the European Commission's passage of an extension to the Block Exemption Regulation for liner carriers.
   The EC passed the extension, which lasts until April 2015, on Monday. The regulation allows carriers to charter space on each other's services, but does not permit them to share information on rates, nor any information that would inhibit competition.
   The ESC said it was in favor of the exemption extension, so long as carrier consortia keep to activities that don't reduce competition 'and on balance benefits the customer.'
   The shippers' council has joined the European Liner Affair Association, an entity with which it is accustomed to doing battle, in praising the extension. On Monday, the ELAA said the extension was an improvement over the draft proposal drawn up a year ago.

van der Jagt

   The most significant change to the regulation is that the threshold of market share for any one alliance has been reduced from 35 percent to 30 percent. An alliance, or consortium, that exceeds that 30 percent threshold has to self-report any potential violation of the regulation.
   'The changes send another clear signal to the liner shipping industry that they are now subject to the normal competition rules which they should adhere to,' said Nicolette van der Jagt, ESC secretary general.
   While praising the extension, the ESC also said it hopes the EC is moving toward an environment where liner carriers have no antitrust immunity.
   'ESC remains convinced that removal of the (Block Exemption Regulation) in the future would make the issue even more clear, with all self assessments being made on the basis of compliance with the competition rules under the Treaty of Rome, without reference to any market-share thresholds,' the council said.