ESC welcomes EC’s paper on repeal of carrier immunity

ESC welcomes EC’s paper on repeal of carrier immunity    The European Shippers’ Council Tuesday welcomed the European Commission’s competition directorate's discussion paper and its view that the antitrust immunity of liner conferences in Europe appears not to be justified.
   “ESC is greatly encouraged by the European Commission’s proposal to repeal Council Regulation 4056 of 1986 that has given shipping lines immunity from normal rules of competition,” the Brussels-based shippers’ organization said. The EC is now expected to come forward with a “white paper” containing concrete proposals for action “leading to the withdrawal of current block exemption for liner shipping,” the ESC added.
   The EC paper, published last week, said EC services “would propose to repeal the present block exemption for liner shipping conferences.”
   “The commission has listened well to the views of the customers who have stressed that they are willing ‘to take the risk’ of a competitive world,” said Nicolette van der Jagt, secretary general of the ESC. She said this environment is already partly happening with the increasing use of individual and confidential contracting between shippers and carriers.
   Organizations representing ocean carriers, who want to retain the pricing immunity of conferences, have not publicized their reactions to the EC document. Carriers are expected to argue that the review is not over.
   One deciding factor in the reform of the conference antitrust immunity in Europe will be that European member governments, rather than the EC, have the final say in any reform or repeal of the regulation.