Carriers question findings, evidence behind EC conference proposal

Carriers question findings, evidence behind EC conference proposal    Container shipping lines represented by the Brussels-based European Liner Affairs Association (ELAA) charged today that the European Commission’s October 2004 “white paper,” or proposal, on a review of EC Regulation 4056/86 on liner conferences contained “no hard evidence” to support the regulator’s view that the regulation should be repealed.
   The proposal also provided an “incoherent and speculative” assessment of the impact of ending the immunity of conferences, the carrier body said in a strongly worded statement.
   The ELAA, like other industry organizations, submitted comments on the proposed reform to the EC in December. It opposes the outright elimination of the liner carriers' immunity that allows them to cooperate on pricing.
   In its official response to the EC, the ELAA welcomed both the EC’s proposed consultation on a new regulatory structure for the liner shipping industry and the fact that the EC cited the ELAA’s proposed compromise (ending conference immunity for ocean rates, but renewing immunity to agree on surcharges and compile common price and capacity statistics). But the carrier body attacked what it regards as a lack of evidence found by the EC to justify the ending of the carriers’ pricing immunity.
   The EC’s impact assessment included in the white paper to justify such a repeal is “not only incoherent and speculative but provides no proper assessment of the likely effect of any legislative change or repeal,” the ELAA said in a statement. The carrier organization said the EC has ignored empirical evidence collated since the review process began 18 months ago, including the so-called Erasmus report.
   The ELAA also questioned that the views expressed by the shippers’ lobby group were representative, saying that ELAA member carriers “recognize few of the views expressed by the European Shipper’s Council” when they meet their shipper customers.
   The ELAA urged shippers to “ask themselves whether it is right for the commission to face the unknown consequences to the liner industry that a decision to repeal the regulation would bring, on the basis of such unsubstantial analysis.”
   The EC competition directorate is expected to publish all the industry comments on its proposal in the next few days. A revised “white paper” is also expected to be issued by the regulator later this year.