The European Shippers’ Council has criticized the rate
increase plan announced last week by the Trans-Atlantic Conference Agreement and urged its
carrier members to dissociate themselves from the program.
Shippers have repeatedly advised their suppliers that "opportunistic price
rises" of the magnitude proposed in the 2000 business plan of TACA cause instability
and uncertainty in the market and are "commercially unacceptable," the ESC said.
TACA’s announced rate rises, effective Jan. 1, are in the region of 50
to 75 percent for some commodities, according to the shipper council. The increases are
unprecedented and substantial, it added.
The increases will apply to cargoes moving under tariff and
conference-wide service contracts, but they would also become a "benchmark for
individual and confidential contract negotiations," the European shipper group said.
"Shippers had hoped that the partial deregulation ushered in by
the Ocean Shipping Reform Act, as well as the legal certainty provided by the recent
decisions adopted by the European Commission, would lead to more sensible market
arrangements," the ESC said.
The European Commission’s competition directorate is still examining
the maritime aspects of the "TACA 2" agreement, which is pending approval in
Europe.
TACA carriers are Atlantic Container Line, Hapag-Lloyd, Mediterranean
Shipping Co., Maersk Line, NYK, OOCL, P&O Nedlloyd and Sea-Land Service.
ESC CRITICIZES TACA’S RATE RISES, POLICY
ESC CRITICIZES TACA’S RATE RISES, POLICY
