ELAA Welcomes EC's Consortia Exemption

News was prepared under the information support of Online Daily Newspaper on Hellenic and international Shipping "Hellenic Shipping News".

30 Sep 2009

The European Liner Affairs Association, a trade association consisting of most of the world’s major container lines, welcomed a decision by the European Commission to extend the antitrust immunity that the EU grants for liner shipping consortia. The EC on Monday adopted a new regulation extending for another five years the block exemption regulation for alliances and vessel-sharing agreements, starting in April 2010. The extension of the EU’s block exemption lowered the so-called threshold, or the market share, that any consortium can control on any single trade lane to 30 percent from 35 percent previously.
“The new Block Exemption is crucial to our industry, particularly in the present difficult economic circumstances. It allows lines to work together within consortia and with legal certainty of providing services to its customers,” said Chris Bourne, the ELAA’s executive director.
But he expressed reservations about the lower threshold.
“We would have preferred, as in other regimes, not to have a market share threshold or a lock-in period but we appreciate that these were always difficult matters for the Commission,” Bourne said.
Nevertheless he said he was grateful that “the Commission has listened to the arguments of ELAA Members and has made improvements to the wording of the original BER draft.”

Source: Journal of Commerce