FMC to assess impact of European liner conference ban

The Federal Maritime Commission will consider the impact caused by the end of liner conferences in Europe as part of its program objectives for fiscal years 2008 and 2009.

Liner conferences will be banned from all European trades with the repeal on Oct. 18 of EC Regulation 4056/86, which permitted a block exemption to set common freight rates and cooperate on capacity.

In its fiscal year 2009 budget estimates submitted to the Appropriations Committee, the FMC said it would analyze current uses of antitrust immunity by vessel operators and MTOs operating in U.S. trades, and assess competitive impacts of European Union action repealing the block exemption for liner shipping conferences in U.S./EU liner trades.

It also said it would evaluate how effectively the agency monitors agreements that are designed to address specific supply-chain issues such as port-related congestion, security, and environmental problems affecting local communities and industry stakeholders.

The FMC is requesting a fiscal year 2009 budget of $23.95 million, up $1.88 million from the previous financial year. 

 Source: American Shipper