British shippers back EC conditions for Maersk-P&O Nedlloyd takeover

British shippers back EC conditions for Maersk-P&O Nedlloyd takeover    The United Kingdom’s Freight Transport Association, which represents British shippers and logistics companies, has welcomed the pro-competition conditions under which the European Commission has approved the takeover of P&O Nedlloyd by A.P. Moller-Maersk, as well as the takeover itself.
   Far from expressing concerns over the impact of the largest carrier takeover in the industry of container shipping, the Freight Transport Association described Tuesday the Maersk-P&O Nedlloyd takeover as “the way forward for liner shipping.”
   Some Freight Transport Association members raised concerns about the proposed takeover in May, where they saw a potential market dominance by the combined entity on certain European trade routes, the U.K. organization admitted. However, it said the EC’s request that the new operation should withdraw from certain European conferences and consortia, and sell off P&O Nedlloyd’s Europe/South Africa liner interest, “will go a considerable way to satisfying many of those early concerns.”
   Andrew Traill, head of maritime policy at the Freight Transport Association, said the EC “has tackled the few areas of potential dominance through solutions that fit well with the free market and that have customers’ and consumers’ interests at their heart.”
   “It cuts through the nonsense that is often spoken about how shippers’ interests would be damaged if the liner shipping conferences or some other equivalent form of collective or cartel-like structure did not exist,” he added. The Freight Transport Association, along with the European Shippers’ Council, are urging the EC to remove the antitrust immunity of liner conferences in Europe.
   “Consolidation happens in every industry,” Traill said. From a competition viewpoint, he said he regards the takeover as “an improvement in the situation” despite the reduced number of carriers, and that the transaction will create new market opportunities for other carriers.
   Referring the Maersk-P&O Nedlloyd takeover, the Freight Transport Association said European Union competition policy is “adequate to care for customers’ interests.”
   Charlie McCreevy, EU commissioner for the internal market, has said the EC must ensure that shippers and end consumers do not lose out in the takeover. He said remedies offered showed that this would not be the case.
   In a statement, the Freight Transport Association said McCreevy “points the way forward for the development of liner shipping in an open and competitive market without liner shipping conferences.”
   The Freight Transport Association said that, on completion of the takeover, “a major re-structuring process” involving P&O Nedlloyd will occur, including its withdrawal from:
   * The Grand Alliance (giving six months’ notice).
   * The Australia-New Zealand Europe Liner Association conference.
   * The Eurosal-New Caribbean Service consortium.
   * The Southern Africa Europe Container Service (SAECS).
   * The Europe/East Africa conference.
   * The New Caribbean Rate Agreement and two Europe, Caribbean and Central America conferences.
   * The vessel sharing and slot charter deals with Mediterranean Shipping Co. and Hamburg Sud on the Europe/East Coast South America trade.