Asian shipper group lauds latest EC decision on liner conferences

Asian shipper group lauds latest EC decision on liner conferences    The Asian Shippers' Council said Wednesday it concurs with the European Commission over its assessment of the latest European Liner Affairs Association (ELAA) proposal to replace the conference with a system of information exchange.
   The EC turned down ELAA's proposal to replace the conference with an industry organization for pro-competitive information exchange on the grounds it would harm 'the pro-competitive impact of abolishing the block exemption,' ASC said in a statement.
   'In a submission to the EC Directorate General for Competition, the Global Shippers' Forum (GSF), of which ASC is a main component, detailed its objection to ELAA's proposals on capacity forecast and benchmarking of currency fluctuations, strongly supporting the EC's assessment against ELAA's proposals,' the Asian council's statement said. 'In it the GSF noted, 'These could be used to perpetuate the existing collusive behavior and practices embodied in the liner shipping conferences and discussions agreements.' '
   ASC and GSF are particular concerned over ELAA's proposal for the production, discussion and publication of liner capacity forecasts.
   'Such joint analysis is a feature of the present conference system, enabling conferences and discussion agreements to tacitly agree on and influence the vessel deployment on the various trade routes and liner freight rates,' ASC said.
   The shipper group said that 'by repealing block exemption from antitrust immunity for liner shipping, effective October 2008, the EC is ushering in a new environment for liner shipping. It will align liner shipping with most other industrial and service sectors by bringing an end to the system that permits collusion amongst industry members to establish freight tariffs and surcharges, a privilege they have enjoyed for about 100 years.'