EU Competition Commissioner Margrethe Vestager now plans to scrutinize the extreme situation unfolding in the global container market together with the industry. The EU will subsequently "consider ways forward," a spokesperson tells ShippingWatch.
The EU's work program states that the container lines' consortia block exemption regulation will be extended by four years before long. This makes the organizations opposed to the regulation voice fierce criticism of the EU Commission.
The good news for container majors is that they have become better at arriving on time. The bad news is that more than one in five containers still arrive late, according to new figures on the full year 2019.
The Global Shippers' Forum does not understand why EU Commissioner for Competition Margrethe Vestager wants to extend the container shipping companies' consortia block exemption regulation. The shippers will not let the case rest here, the association tells ShippingWatch.
The European Commission wants to extend the consortia block exemption regulation, BER, for container shipping lines. The commission calls for comments in a consultation period. The current regulation is set to expire in April 2020.
If EU Commissioner for Transport Violeta Bulc has her way, the container sector's consortia block exemption regulation should be extended, she says in an interview with ShippingWatch. The regulation gives liner companies certain competitive edges, and it is currently being reviewed.
In a highly direct and critical comment, container carriers' global lobby organization attacks the OECD's latest evaluation of the block exemption regulation which allows competing carriers to work together.
It is not just a question of whether the container sector's unique Block Exemption Regulation should be dissolved or extended. The EU Commission now floats the notion that the exemption could be adjusted, says EU Commission director general for competition according to media.
Most of the consortia cooperation between liner companies exceed the threshold they must remain below to benefit from the EU's consortia block exemption, concludes a new report by the International Transport Forum, a body under OECD. This is noteworthy for three reasons, says ITF.
The container carriers continue their fight for an extension of the unique consortia block exemption regulation, which allows competing shipping lines to cooperate. In a letter to the EU Commission, the association lists four arguments in favor of the regulation.
The fronts between container carriers and shippers are not necessarily that fiercely drawn when it comes to the carriers' unique competitive edge, says Sea-Intelligence. Even the most ardent opponents of the Consortia Block Exemption Regulation do not want to get rid of alliances altogether, notes the firm.
Supporters and critics have submitted their arguments for either maintaining or discontinuing the liner shipping company's unique competitive edge, the Consortia Block Exemption Regulation. Read on to learn who says what.
The current Block Exemption Regulation for liner companies should be revoked, say some. Others want it extended. The EU Commission will now address the issue. ShippingWatch has gathered some of the comments from the disputing parties here.
EU Competition Commissioner Margrethe Vestager says liner shipping companies' unique possibility of forming collaborative arrangements has worked well. But the outcome of the review she is working on right now could be "quite extensive," she says in an interview with ShippingWatch.
When the container carriers have an important political case on their hands, they leave it to John Butler, President and CEO of the World Shipping Council. He now has 18 months to maintain the industry's unique competitive edge.
If the EU Commission decides to end a unique competition rule for the liner shipping companies, it will make some elements more difficult for the container carriers, Hapag-Lloyd CEO Rolf Habben Jansen tells ShippingWatch.
In a comprehensive report, the International Transport Forum, under OECD, voices fierce criticism of the three mega-alliances. The negative consequences far surpass the benefits, and politicians need to act. Read the conclusions and find the complete report here.