NCBFAA URGES END TO OCEAN CARRIER ANTITRUST IMMUNITY

NCBFAA URGES END TO OCEAN CARRIER ANTITRUST IMMUNITY

   The National Customs Brokers and Forwarders Association of America says Congress should narrow or eliminate antitrust provisions for carriers in the Ocean Shipping Reform Act.
   "The unregulated antitrust immunity existing today is a throwback to an
era of robber barons and cutthroat discriminatory practices," the NCBFAA said.
   "Coupled with confidential or secret contracts, and with virtual absence of any U.S.-flag carriers, it enables foreign carriers to continue to exploit the U.S. marketplace, primarily at the expense of the smaller
shipper, forwarder and non-vessel operating common carrier."
   In late 1998 Transpacific Stabilization Agreement carriers were alleged to have refused to provide cargo space covered under contracts unless smaller shippers and intermediaries agreed to rate increases and other charges.
   Some large shippers are also dissatisfied with the OSRA changes. "The antitrust immunized carriers have been able to make a mockery of the confidential aspect of the service contracts that was of such importance to the shippers," NCBFAA said.