Global Shippers Forum approves non-rate making liner agreements

MEMBERS of the Global Shippers' Forum (GSF) say it endorses non-rate making liner shipping agreements that do not seriously reduce competition.

The statement was made in response to a study produced for the 21 member economies of the Asia-Pacific Economic Cooperation (APEC) to consider how to harmonise the regulations of members in this area.

The forum, which comprises regional shippers associations from all over the world, voiced its support for the abolition of liner conferences in Asia and called for increased transparency and efficiencies to promote greater competition in the world shipping market.

A statement issued by GSF members said that in this regard shippers may not realise the full potential benefits of any efficiencies and cost savings afforded by non-rate making agreements if "they operate in tandem with liner conferences or discussion agreements as competition will most likely be blunted or reduced."

The comments were made in response to a November 2008 study produced by the consultants Meyrick and Associates for the APEC economies into non-ratemaking liner shipping agreements.

"As the report points out, the GSF agrees that many shippers and their representative groups are concerned that some alliances may be getting too big, yet there is equal recognition that the lines need to find greater economies and efficiency gains," the GSF said in a statement.

"While the shipper organisation recognises the current financial problems of the lines in this current recession, governments cannot ignore the longer term picture or the principles of competition policy."

Consequently, the GSF members are urging Asian nations to abolish liner conferences, as they "strongly believe that European reforms repealing the liner block exemption, as well as changes brought about in North America, such as confidential contracting between individual carriers and their customers, would provide comparable benefits for Asian countries, resulting in less influence by conferences and discussion agreements over rates and services."

The group continued: "GSF believes that anti-trust immunity as it relates to the ability of liner carriers to benchmark, discuss, set or fix rates, service terms and/or surcharges, is not necessary and should be terminated. Asian governments, while recognising national differences, are encouraged to introduce market based principles as they apply to liner shipping."

Said Asian Shippers' Council chairman John Lu: "Support for non-rate making agreements should be conditioned on governments being able to examine these agreements and that they serve to promote efficiency as well as competition in the marketplace."

The GSF statement added that its members support a need for increased regulation of non-rate making liner shipping agreements. However, the GSF believes that it remains important for governments to promote transparency of the agreements filed and to continue to monitor the impact of such agreements on competition.

The study into non-rate making liner shipping agreements will be considered by the APEC jurisdictions' maritime experts group at its meeting in Singapore. It will also be discussed by GSF members, along with the current European Commission review of the consortia regulation, at a meeting in London from September 14-16.

(Source: www.schednet.com)