NEW -- NCBFAA: No special treatment for lines

The National Customs Brokers and Freight Forwarders Association said in a filing with the Federal Maritime Commission Thursday that the agency should either challenge or at least seek detailed justification from transpacific container carriers who want antitrust immunity to discuss capacity rationalization.

   NCBFAA said it is concerned approval of the request from the Transpacific Stabilization Agreement -- which it said controls about 90 percent of the trade -- could lead to less service and higher rates.

   NCBFAA believes that the proposal on its face raises concern that it could result in an unreasonable reduction in transportation service or an unreasonable increase in transportation costs, says the letter from the group's counsel, Edward D. Greenberg, and that no approval should be considered by the (FMC) unless or until the carriers are able to demonstrate that neither of these fears are justified, said the letter from the group.

   TSA members, all foreign carriers, are no more deserving of special consideration than any other company facing the problems caused by current economic conditions, the group said.

   NCBFAA has long opposed the continuation of antitrust immunity for steamship lines as inappropriate and unnecessary, Greenberg wrote. "And, the NCBFAA is particularly concerned that the expanded immunity now sought by TSA could substantially and adversely affect the ocean shipping marketplace.

   Although Congress did not eliminate the commission's ability to immunize carrier agreements … the legislative history makes it clear that the FMC was expected to carefully consider anticompetitive effects, he said.

   To support the NCBFAA position, Greenberg provided the FMC with an economic study on an agreement between Aloha Airlines and Hawaii Airlines that concluded the effect of capacity control coordination, even for a limited time, could have significant adverse effect on consumer prices.

   Headquartered in Washington, D.C., NCBFAA represents nearly 800 freight forwarders, customs brokers, ocean transportation intermediaries, non-vessel-operating common carriers and air cargo agents.

Source: American Shipper