Carriers call for impact study on ending of EU conference immunity

Carriers call for impact study on ending of EU conference immunity    The International Chamber of Shipping (ICS) told the European Commission it should conduct a legal and economic study on the impact of withdrawing liner conferences' immunity in Europe, before taking any decision on the issue.
   In a formal comment to the EC’s competition directorate about the commission’s proposed reform of the conference regulation 4056/86, the London-based association of shipowners said: “Before any firm decision is taken to remove the current block exemption for liner conferences from EU competition law, ICS believes it will be critically important for the commission to conduct the necessary legal and economic research on the issues … not least the implications for existing international commitments of the EU and its member states, which may require negotiation with the EU’s trading partners.”
   ICS believes that any new regime adopted by Europe could represent “a major departure from the regimes that exist in the rest of the world.” The abolition of conferences, and the conflict with the United Nations Liner Code and other agreements that could result, would require negotiations with the EU’s trade partners, ICS argued.
   The EC has held the view that no conflicts of law arose during the application of conference regulation 4056/86, and that such a conflict would only arise if a trading partner forced the shipping industry to follow certain rules that were prohibited in the EU.
   The ICS urged the EC to retain a provision in its future shipping regulation to trigger negotiations with non-EU countries in the event of a conflict of laws, as specified in article 9 of regulation 4056/86.
   In October, the EC published a “white paper,” or proposal, which considered the removal of the antitrust pricing immunity of liner shipping conferences in European trades. The EC’s competition directorate started a consultation on a potential reform in March 2003.
   As already stated during the consultation exercise in 2003, ICS reiterated it believes that liner conferences have had a “stabilizing effect” on volatile and cyclical shipping markets, assuring reliable services for shippers, while contributing to the provision of adequate and reliable maritime transport.
   ICS added that it welcomes the EC's willingness to explore options for an alternative regime that might preserve some of the advantages of current arrangements.
   “If the preservation of the status quo is not deemed to be acceptable by the commission, a regime along the lines of that proposed by the European Liner Affairs Association could, as a minimum, be accepted as an alternative,” it stressed.
   This refers to a proposal made in September by the carrier group European Liner Affairs Association, under which carriers would lose their immunity covering joint pricing in European trades, but would retain an immunity to set joint surcharges and exchange statistics on supply, demand and freight rates.