EU antitrust protections lost, causing uncertain times for container shipping

The World Shipping Council (WSC) has warned that the expiration of the Consortia Block Exemption Regulation (CBER), which allows liner shipping companies to form shipping consortia, will create uncertainty in the industry. The regulation, in place since 2009 and extended in 2014 and 2020, enables companies to enter into vessel-sharing agreements as long as their combined market share is below 30% and they do not fix prices or share markets. However, the European Commission’s Directorate-General for Competition (DG COMP) has decided to let the regulation expire in April 2022. The DG COMP argues that the exemption no longer promotes competition in the shipping sector due to significant structural changes and the impact of the COVID-19 pandemic. After the expiration of CBER, shipping consortia will be subject to EU antitrust rules. The WSC acknowledges the benefits of ship-sharing but disagrees with the decision to abolish CBER.

Liner shipping alliances, such as 2M, Ocean Alliance, and THE Alliance, operate as consortia, with various vessel-sharing agreements between alliance partners and others. These alliances contribute to economies of scale and improve the utilization of shipping space. The expiry of CBER does not make cooperation between shipping companies illegal; however, they will need to assess the compatibility of their agreements with EU antitrust rules based on the Horizontal Block Exemption Regulation and the Specialization Block Exemption Regulation. The WSC highlights the need for regulatory clarity and expresses willingness to engage in further dialogue with DG COMP.

The decision to let the CBER expire will have implications for the liner shipping sector, introducing a period of uncertainty as companies adapt to the new legal structure. The WSC appreciates the benefits of ship-sharing but disagrees with the reasoning behind the abolition of CBER. The industry will now need to navigate EU antitrust rules and ensure their agreements are compliant. Maritime services are crucial for global trade, and shipping consortia have played a significant role in improving efficiency and sustainability in the transport sector. The WSC is carefully considering DG COMP’s position and hopes for further dialogue to address concerns and provide regulatory clarity for the industry.

Source .