FMC seeks input for EU liner regulation study

FMC seeks input for EU liner regulation study    The U.S. Federal Maritime Commission is seeking input for its inquiry into the European Union’s decision in 2008 to end antitrust protection for liner shipping companies.
   The FMC asked for public comments on the effects on international liner shipping of the EU's repeal to be submitted by Jan. 18. It said the comments would be incorporated into its Analysis of the EU Repeal of the Liner Conference Block Exemption, which is scheduled to be completed in late 2011.
   The study fulfills the FMC's responsibility to “keep abreast of changes in foreign laws and regulations that may impact liner activities in U.S. trades,” and to determine whether commission action was warranted due to any effect the EU repeal may have on U.S. trades, the commission said.
   The FMC said it was aware that in 2006 the National Industrial Transportation League, the country’s largest organization for shippers, recommended to the Antitrust Modernization Commission that the U.S. government review of U.S. antitrust immunity in the wake of EU’s repeal of the block exemption. The NIT League stated, in particular, that such a review should include an analysis of the impact that the changes adopted in Europe would have on the shipment of goods in U.S. trades.
   The adoption by the European Union of Regulation 1419/2006, on Sept. 25, 2006, removed the previous block exemption from EU competition laws as of Oct. 18, 2008. Under European Commission Regulation No. 906/2009, liner shipping consortia with market shares up to 30 percent retain an exemption for certain activities, such as sharing space on ships, which is generally seen as helping shippers by providing them access to a greater range of services, more frequent services, and access to larger, more efficient ships.
   Last November, FMC Chairman Richard A. Lidinsky Jr. announced the commission's intention to undertake the study, saying it would cover from January 2006 through December 2010, and that it would include an analysis of changes in liner market structure, competition, services offered, vessel capacity, rates and surcharges.
   The FMC noted that Europe/U.S. trades include service to both countries on the North Atlantic and the Mediterranean. Noting there has been no conference in the U.S./Mediterranean trade since February 2006, the study, to be conducted by the FMC’s Bureau of Trade Analysis, will be focused on the North Atlantic trade.
   More information, including a detailed questionnaire can be found here.