A part of Watch Media

ShippingWatchFriday3 February 2023

  • Search
  • Log in
  • Carriers
  • Logistics
  • Regulation
  • Suppliers
  • Search
  • Log in
  • Latest
  • Search
  • Log in
  • Carriers
  • Logistics
  • Regulation
  • Suppliers
  • Offshore
  • Ports
29/11/2013at 09:22

This is the rule 14 carriers are suspected of violating

The EU-Commission will rely on a specific section of legislation in the ongoing case against the 14 container carriers suspected of price coordination. ShippingWatch delves into §63, the key section in the case.
BY TOMAS KRISTIANSEN

Does it amount to price coordination when container carriers announce their intentions of - or desire to - increase the price of transporting a container from, for instance, Rotterdam to Shanghai?

The EU's Commissioner for Competition, Joaquín Almunia believes that this could constitute a degree of price coordination, or concerted practice, when carriers such as Maersk Line or Hapag-Lloyd announce their plans to increase the rates on certain routes. The announcements are picked up by the media, which publicizes them, and the competitors will often follow along in what Brussels considers a somewhat coordinated effort.

EU launches competition proceedings against container lines

ShippingWatch has discussed the case with sources in the EU-Commission's Competition Authority, who explain that the case is based primarily on Section 63 of the EU competition law. This section concerns the rules of unilateral cooperation, referring to cooperative agreements between companies that occupy the same position in the transport chain, and these are the rules that the EU will now use to scrutinize the carriers. §63 states that:

"Where a company makes a unilateral announcement that is also genuinely public, for example through a newspaper, this generally does not constitute a concerted practice within the meaning of Article 101(1) (10). However, depending on the facts underlying the case at hand, the possibility of finding a concerted practice cannot be excluded, for example in a situation where such an announcement was followed by public announcements by other competitors, not least because strategic responses of competitors to each other’s public announcements (which, to take one instance, might involve readjustments of their own earlier announcements to announcements made by competitors) could prove to be a strategy for reaching a common understanding about the terms of coordination."

Do you want to stay up to date on the latest developments in International shipping? Subscribe to our newsletter – the first 40 days are free

Two principles

That is: On the one hand, the announcement indicates that this behavior does not damage the competition. But on the other hand, it could damage the competition if competitors follow suit.

EU basically operates with two principles in competition distorting behavior: The one that is reached through written or verbal agreement, and the one that happens "by itself," because there is a common understanding that this is good for the industry. In the case of the 14 carriers, the latter example applies, as there is no smoking gun - at least not yet.

But a concerted practice, which is the term used by the EU, could also be in violation of the rules. Or as the competition law says:

"[T]he concept of a concerted practice refers to a form of coordination between undertakings by which, without it having reached the stage where an agreement properly so-called has been concluded, practical cooperation between them is knowingly substituted for the risks of competition."

Read more about the EU's rules to prevent competition distorting behavior amongst shipping companies, and others, here.

Do you want to stay up to date on the latest developments in International shipping? Subscribe to our newsletter – the first 40 days are free

EU: New competition case will not affect P3 process 

SeaIntel: EU faces difficult case against container carriers

Alphaliner: EU case challenges carriers rate practice 

Related articles:

  • Photo: Wärtsila

    SeaIntel: EU faces difficult case against container carriers

    For subscribers

  • Photo: Port of Gothenburg

    Alphaliner: EU case challenges carriers rate practice

    For subscribers

  • Photo: Virginia Mayo

    EU: New competition case will not affect P3 process

    For subscribers

Sign up for our newsletter

Stay ahead of development by receiving our newsletter on the latest sector knowledge.

!
Newsletter terms

Front page now

Foto: Staff/Reuters/Ritzau Scanpix
Logistics

DSV sees one advantage of downturn: It will be cheaper to buy competitors

Acquisitions are decisive for growth at logistics group DSV, and with prospects of declining freight volumes, the prices of acquisitions will fall. DSV will use this to its advantage, according to CEO Jens Bjørn Andersen.
  • DSV books a much improved 2022 result – but a new reality now awaits
  • DSV aims to grow further via acquisitions with market consolidation still very far away

For subscribers

Hans Lind Dollerup er ny managing director for Dan-Bunkerings europæiske forretning. Selskabet har også hyret en ny kommerciel direktør i Europa. | Foto: Dan-Bunkering
Suppliers

Dan-Bunkering hires new management for Europe

For subscribers

Foto: Rebecca Naden/Reuters/Ritzau Scanpix
Tanker

Euronav retains substantial dividend due to merger strife

For subscribers

Foto: A.p. Møller – Mærsk, Verity/pr
Logistics

Maersk deploys drones in US inventories

For subscribers

Foto: Zhang Ke/AP/Ritzau Scanpix
Offshore

There aren't enough ships to install giant wind turbines across Asia

For subscribers

Genrebillede. | Foto: Lee Jae Won/Reuters/Ritzau Scanpix
Logistics

Expeditors hit by claim from robot company after extensive cyberattack

For subscribers

Further reading

Foto: A.p. Møller – Mærsk, Verity/pr
Logistics

Maersk deploys drones in US inventories

The Danish shipping giant is testing the use of drones at the company’s US inventories in an attempt to improve warehouse inventory systems.

For subscribers

Genrebillede. | Foto: Lee Jae Won/Reuters/Ritzau Scanpix
Logistics

Expeditors hit by claim from robot company after extensive cyberattack

US-based Expeditors is facing claim from a customer citing business difficulties resulting from the freight forwarder’s paralysis caused by a cyberattack a year ago.

For subscribers

Foto: DSV
Logistics

DSV books a much improved 2022 result – but a new reality now awaits

Danish logistics firm DSV delivered strong top and bottom line progress last year, but the company is setting the stage for a very different 2023.

For subscribers

Latest news

  • Maersk deploys drones in US inventories – 2 Feb
  • Expeditors hit by claim from robot company after extensive cyberattack – 2 Feb
  • DSV sees one advantage of downturn: It will be cheaper to buy competitors – 2 Feb
  • Euronav retains substantial dividend due to merger strife – 2 Feb
  • Dan-Bunkering hires new management for Europe – 2 Feb
  • Mærsk Center for Zero Carbon hires new executive from port company – 2 Feb
  • Stolt-Nielsen expects good times ahead for chemical tanker after new profit – 2 Feb
  • There aren't enough ships to install giant wind turbines across Asia – 2 Feb
  • Creditors in crisis-stricken Dof request bankruptcy proceedings – 2 Feb
  • DSV books a much improved 2022 result – but a new reality now awaits – 2 Feb
See all

Jobs

  • Financial Controller for International Shipping Company

  • Foundation Package Manager - Offshore wind industry

  • Senior Financial Controller

  • Fleet Manager

  • Chartering Manager for Lauritzen Bulkers A/S

  • Senior Lead, Human Sustainability at Sea

  • Copenhagen Shipping Company is hiring a skilled cargo broker

  • Junior Finance Business Partner - offshore wind industry

Jobs

  • Financial Controller for International Shipping Company

  • Foundation Package Manager - Offshore wind industry

  • Senior Financial Controller

  • Fleet Manager

  • Chartering Manager for Lauritzen Bulkers A/S

  • Senior Lead, Human Sustainability at Sea

  • Copenhagen Shipping Company is hiring a skilled cargo broker

  • Junior Finance Business Partner - offshore wind industry

See all jobs

Colophon

ShippingWatch
Search

Sections

  • Carriers
  • Logistics
  • Regulation
  • Suppliers
  • Offshore
  • Ports
  • Sitemap
  • RSS feeds

Editor

Tomas Kristiansen

tk@shippingwatch.dk

Tel.: +45 3330 8360

Editor-in-chief

Anders Heering

Publisher

JP/Politiken Media Group Ltd

Advertising

annoncering@infowatch.dk

Tel.: +45 7077 7445

Advertising

Job Advertising

job@infowatch.dk

Tel.: +45 7077 7445

Jobs

Subscription

Try ShippingWatch or get an offer for a subscription meeting the exact needs of you or your company.

shippingwatch@infowatch.dk

Tel.: +45 7077 7445

Learn more about subscriptions here

Address

ShippingWatch

Rådhuspladsen 37

1785 Copenhagen K, Denmark

Tel.: +45 3330 8360

Guidelines

  • Privacy Policy

Copyright © ShippingWatch — All rights reserved

Microsoft is in the process of discontinuing Internet Explorer – and so are we.
For a better experience, we recommend using one of the following browsers.

Kind regards,
ShippingWatch

Google ChromeMozilla FirefoxMicrosoft Edge