Tripartite Shippers’ Group repeats call for conference abolition

Tripartite Shippers’ Group repeats call for conference abolition    The Tripartite Shippers’ Group, comprising shippers organizations from North America, Europe and Asia, has repeated its call for the outright elimination of the liner carriers’ antitrust immunity that permits liner conferences and discussion agreements to collectively set rates and surcharges.
   The carrier lobby group, the European Liner Affairs Association, has just delivered to the European Commission its revised proposals for a post-liner conference system in Europe, following the EC’s decision in December to repeal Regulation 4056/86.
   “Despite repeated attempts by the ELAA to preserve vestiges of price fixing through proposals that would establish information exchanges that evaluate information on carrier costs, volumes and market shares, the TSG believes that an unfettered economic marketplace is a better judge for determining how commercial relationships take place,” the shippers' group said.
   “Any national or regional amendments to laws and regulations which seek to change the protections afforded today to liner conferences should be replaced with principles where individual carriers and their respective customers may operate on the basis of true economic partnerships,” said Peter Gatti, executive vice president of the U.S. National Industrial Transportation League. “This is precisely why developments in Europe and elsewhere which would effectively eliminate the ability of conferences or groups of carriers to manipulate pricing are so very important.”
   “The Asian Shippers’ Council has always been a strong advocate for EU repeal of antitrust immunity for liner conferences. We applaud the European Commission for taking the decisive leading role in this repeal process,” said John Lu, founding chairman of the ASC.
   “Unfortunately, in Asia, regulatory protection for shippers is largely missing, and Asian shippers are subject to the onslaught of monopolistic practices of liner conferences, which has been the largest single obstacle to a normal relationship between shipping lines and their customers, the shippers. Thus, we look to the EC to exact changes in the maritime liner industry that will benefit all in this globalized market economy,” Lu said.
   “Shippers believe that those ocean carriers who demonstrate their understanding of the need for change and are able to adapt to this changing commercial and regulatory environment will enjoy real competitive advantage,” said Nicolette van der Jagt, secretary general of the European Shippers’ Council.
   “Similarly, those carriers that engage and forge closer commercial relationships with customers, and treat their customers as economic partners are not only likely to be more successful, but will be in a better position anticipate future changes and trends in the market.”
   In a separate development, Lu was today re-elected for the ninth term, as chairman of the Singapore National Shippers’ Council.