Competitiveness Council backs end to liner conferences

Competitiveness Council backs end to liner conferences    The end of liner conferences in Europe took another step forward today as the European Union’s Competitiveness Council unanimously adopted the European Commission’s December proposal to repeal Regulation 4056/86, which allows carrier groups to set common freight rates and cooperate on capacity.
   “I am delighted the council has adopted this proposal less than a year after we presented it,” said Charlie McCreevy, the EC’s Commissioner in charge of the proposal. “The European shipping industry will benefit from the more competitive market that will result from the repeal of the block exemption, and the EU economy as a whole stands to benefit from lower transport prices and more competitive exports.”
   The European Shippers’ Council also welcomed the decision. “This is another landmark day for shippers. We should recognize this day as one that symbolizes the beginning of a new era of shipper-carrier cooperation; where bridges between the two parties can be rebuilt on firmer footings,” said Nicolette van der Jagt, secretary general of the ESC.
   “The ESC wishes to offer the lines an opportunity to join shippers on a more proactive agenda for the future, on the operational, supply chain and service issues that matter most to shippers, that should be at the top of the carrier’s agendas also, but on which progress can only take place in an environment free from the risk of collusion and anticompetitive behavior, and in an atmosphere of trust,” van der Jagt added.
   Existing liner conferences will be able to continue operating on routes to and from Europe until October 2008. Before the end of the two-year transitional period, the EC will publish guidelines on the application of the competition rules to the sector.