Organizations Call for Review of EU Comp Rules

Trade organizations are requesting that the review of the European Union's Consortia Block Exemption Regulation for the container shipping sector get underway right away. In accordance with the Regulation, container shipping lines are exempt from the majority of EU competition law's checks and balances and are allowed to share commercially sensitive information for the purpose of controlling the number and size of ships deployed as well as the frequency and timing of sailings on major global trade routes.

Since the Regulation's last renewal in 2020, European companies and other parties saw significant disruptions to the transportation of products via container shipping. Shipping costs increased by more than fourfold on several routes and remained 3-4 times higher than before COVID. An immediate review of the Block Exemption is necessary because the advantages of the shipping lines' exemptions from general competition law are not being shared.

The Federal Maritime Commission conducted investigations in the United States that revealed information and made recommendations. As a result of these investigations, a new Ocean Shipping Reform Act was passed in May, which addresses many of the complaints of customers and service providers of container shipping lines. The organizations that signed the letter to the Commission make reference to these revelations and recommendations.

In order to guarantee that the deep-sea container shipping market runs in a way that is fair and transparent to all participants in the maritime supply chain, all interested parties will have the opportunity to contribute information and arguments during the Regulation's evaluation. Before the existing rule expires in April 2024, this should take into account new measures and procedures and provide enough time for them to be thought upon and put into practice.