Lines tell Indian government they'll stop collective rate setting

Shipping lines operating in the India/Europe trade have agreed to stop collectively setting rates as of October, when a rule banning such entities takes effect in Europe.

Indian news outlets reported that last Thursday the member lines of the India Pakistan Bangladesh Ceylon Conference agreed to refrain from discussing tariffs with each other. IPBCC carriers handle about 70 percent to 80 percent of Subcontinent/Europe trade.

In truth, the lines had little choice as the European Commission this fall repeals the antitrust exemption for liner carriers. But the lines also have had to convince the Competition Commission of India that their practices will be above board. The carriers have, however, argued that they must be able to discuss service arrangements and create alliances to properly, and profitably, serve Indian ports. It's believed that the CCI, which formally comes into power this summer, will agree with that argument and give the lines discussion privileges that they enjoy in other trades, such as the transpacific.

Shippers are expected to benefit from the change, as lines will individually set rates with customers rather than publishing conference-wide tariffs. 

Source: American Shipper