Forwarders want China to ban carrier 'discussion agreements'

FREIGHT forwarders are urging the Chinese government to introduce anti-trust regulations to stop shipping lines from discussing rates and surcharges.

Steve Huang, CEO for China at DHL Global Forwarding, said introduction of anti-trust regulations would be "a positive development for the logistics industry in China," reports London's International Freighting Weekly.

This sentiment was echoed by managing director Claus Schensema of GAC Forwarding & Shipping (Shanghai), who said shipping lines, like forwarders, should "operate independently, accept market dynamics and fight prices with better service."

He added: "The Chinese authorities are taking a keen interest in the impact of the disbanding of conferences past and present on their own carriers."

But Davies Turner supply chain chief Tony Cole wasn't so sure. "Europe already has anti-trust regulation, while the US is yet to impose this, and yet both still face similar challenges in view of market conditions: equipment shortages, reduced vessel capacity and artificially high rates," he said.

"I do not see how regulation will necessarily resolve the issue of capacity and equipment shortages, but there needs to be a concerted effort by carriers to offer a more stable marketplace and a return to quarterly rates to avoid the significant peaks and troughs in freight rates we have seen of late."
(Source:www.schednet.com)