Carrier expects “workable” reform of EU antitrust law

Carrier expects “workable” reform of EU antitrust law

Carrier expects “workable” reform of EU antitrust law

   Hapag-Lloyd said Tuesday it believes the current review process concerning the antitrust immunity of liner conferences in Europe will lead to a compromise solution that is acceptable to ocean carriers, as the European Commission continues to work on its proposed reform.
   “This is under negotiation,” said Michael Behrendt, chairman of Hapag-Lloyd. “There’s a chance to find something we can live with.”
   The EC issued a “white paper,” or proposal, last October, which considered the outright removal of the antitrust pricing immunity of liner shipping conferences in European trades. But shipping lines have convinced the regulator that it must gather more information on the effect of a reform before implementing it and are still pressing the regulator to consider compromise proposals. In January, the EC invited bids from external consultants to conduct a study into the impact of removing the conference immunity in Europe.
   “The EU should seriously consider the need for a platform to discuss supply and demand to make sure we have enough capacity,” said Adolf Adrion, chief executive officer of Hapag-Lloyd Container Line.
   The German shipping line, working within the European Liner Affairs Association carrier lobby group, is also asking the European Commission for an immunity to set joint surcharges or surcharge formulae, but Adrion said the priority for Hapag-Lloyd is to have a joint carrier forum to discuss supply and demand.
   The EC's competition directorate has worked on a reform of the competition rules for more than two years, and is still assessing a compromise proposal made last September by the European Liner Affairs Association. Under the carrier proposal, which has been criticized by shipper associations, ocean carriers would no longer benefit from an immunity to discuss and set ocean freight rates, but would have the right to discuss surcharges and compile price statistics jointly.
   The Far Eastern Freight Conference, the largest conference grouping in the European trades, has been identified by carriers as the entity likely to take on the work of compiling all the joint statistics and price indices, if the EC agrees to the carriers’ proposal.
   Adrion expects the EC to implement new rules replacing the conference regulation 4056/86 towards the beginning of 2007.