Business, Freight News, Sea

Axing block exemption has not affected rates, claims FMC

[ February 21, 2012   //   ]

Ending of the liner shipping industry’s block exemption from EU competition rules in 2006 has had little impact on shipping rates, according to a new study by the US Federal Maritime Commission. The FMC said it could detect only similar differences in revenues between comparable trade routes. although it appeared to have caused an increase in the volatility of rates, a small increase in market concentration and a decline in market share stability, the FMC found. Nor was there any “persuasive evidence” that the repeal had had much effect service quality,

The study concluded that the harm liner conferences were causing harm to shippers was “less substantial than previously believed” although it admitted that the world recession had clouded the issue.