Henry Hyde, R-Ill., chairman of the U.S. House Judiciary Committee, said
he will not move to repeal or make changes in ocean carriers’ antitrust immunity rights
under the new U.S. Ocean Shipping Reform Act.
Hyde disclosed his intentions at the close of a two-hour hearing which
focused on the antitrust issue and alleged ocean carrier abuses, particularly against
smaller shippers and non-vessel-operating common carriers during an eastbound transpacific
space crunch last year.
"I have long questioned the justification for the antitrust immunity
provided in the shipping act," Hyde said, arguing that the immunity allows
foreign-owned carriers to benefit at the expense of U.S. shippers and
NVOCCs.
Hyde, however, took note of the ocean lines’ current plight. "We need to
have a healthy shipping industry, and I’m not sure we have a healthy
shipping industry."
Appearing jointly, shipping-line presidents John Clancey, of Sea-Land
Service, and Tim Rhein, of APL Ltd., said removing the carriers’ antitrust
immunity would seriously disadvantage U.S. carriers and would undermine the shipping
industry’s already shaky condition. Ocean carriers lost an estimated $3.4 billion in the
major trade lanes last year, they said, including about $30 million per week in the
transpacific.
The Federal Maritime Commission investigated transpacific carriers last
year over charges the lines either refusing to provide shippers space or
charging rates above those negotiated in service contracts.
HYDE WON’T ACT AGAINST CARRIERS’ ANTITRUST IMMUNITY
HYDE WON’T ACT AGAINST CARRIERS’ U.S. ANTITRUST IMMUNITY
