ESC welcomes EC’s paper on repeal of carrier immunity

Home/American Shipper/ESC welcomes EC’s paper on repeal of carrier immunityAmerican ShipperESC welcomes EC’s paper on repeal of carrier immunityFreightWaves Staff·Tuesday, June 22, 2004

ESC welcomes EC’s paper on repeal of carrier immunity

   The European Shippers’ Council Tuesday welcomed the European Commission’s competition directorate's discussion paper and its view that the antitrust immunity of liner conferences in

Europe appears not to be justified.    “ESC is greatly encouraged by the European Commission’s proposal to repeal Council Regulation 4056 of 1986 that has given shipping lines immunity from

normal rules of competition,” the Brussels-based shippers’ organization said. The EC is now expected to come forward with a “white paper” containing concrete proposals for action “leading to

the withdrawal of current block exemption for liner shipping,” the ESC added.    The EC paper, published last week, said EC services “would propose to repeal the present block exemption for

liner shipping conferences.”    “The commission has listened well to the views of the customers who have stressed that they are willing ‘to take the risk’ of a competitive world,” said

Nicolette van der Jagt, secretary general of the ESC. She said this environment is already partly happening with the increasing use of individual and confidential contracting between

shippers and carriers.    Organizations representing ocean carriers, who want to retain the pricing immunity of conferences, have not publicized their reactions to the EC document. Carriers

are expected to argue that the review is not over.    One deciding factor in the reform of the conference antitrust immunity in Europe will be that European member governments, rather than

the EC, have the final say in any reform or repeal of the regulation.