On Tuesday, a coalition of 32 groups representing importers, exporters, and third-party logistics companies sent a letter to Rep. James L. Oberstar, D-Minn., calling for an end to what they said was the “antiquated and inappropriate exemption from our antitrust laws” that the liner shipping industry enjoys.
“This extraordinary privilege may have made sense some 100 years ago, but in today's fully integrated global marketplace, competition rather than joint carrier discussions should be the determining factor which governs the price for moving freight,” the coalition said.
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| Oberstar |
Meanwhile, regulation of the railroad industry will be spotlighted Wednesday, as the Senate Committee on Commerce, Science and Transportation holds a hearing on the federal role in national rail policy.
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| Porcari |
Last December, the Senate Committee passed a bill that would enact sweeping reregulation of the railroad industry, aimed at benefiting shippers and increasing competition. Some senators, including Herb Kohl, D-Wis., have said they would also seek to repeal antitrust exemptions in the railroad industry.
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| Elliott |
“While we agree that carriers should continue to be permitted to engage in cooperative agreements that result in more efficient services for their customers (which U.S. antitrust law certainly allows), Congress must end the legalized cartels which, under the current OSRA, are specifically allowed to engage in price fixing, cargo allocation among the carriers, and even agreements to restrict capacity,” the letter said.
“The marketplace should be allowed to determine the prices at which freight moves. Each carrier, individually, should make its own decisions as to pricing, service and capacity, without knowledge of their competitors' plans, or the agreement of their competitors.”
They noted that a Federal Maritime Commission investigation into carrier practices on vessel and equipment capacity and related matters shippers “noted that liner carriers in the U.S. westbound and eastbound Pacific trades have charged identical and/or very similar rates and terms for carriage and uniformly applied surcharges. Carriers have 'rolled cargo,' and refused to load cargoes without additional compensation. In doing so, carriers often ignore contractual service commitments and prohibitions on the unilateral imposition of surcharges. Shipper protests have been largely ignored by carriers, and these disputes are mooted by the need to move the cargo.” ' Chris Dupin


