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Shipper groups call for Block Exemption reform

[ October 4, 2022   //   ]

A group of ten transport and freight associations including CLECAT, FIATA, the Global Shippers Forum and the European Shippers Council have written to European Commission vice-president Magrethe Vestager calling for change to the legislative framework in which the container shipping lines are able to cooperate and for the Consortia Block Exemption Regulation to be reformed before it is extended.

It follows the Commission’s call for evidence as part of its review of the Consortia Block Exemption Regulation on 9 August.

They say that the dramatic changes that have occurred in the container shipping market since the last renewal in 2020 have shown that the nature of the Block Exemption – which was originally intended to relate to port-to-port services only – has allowed carriers to benefit from important market developments.

They add: “As consumers or suppliers to the container shipping sector, we have lost confidence that the benefits of the Block Exemption are being fairly shared and that it is meeting its intended purpose. The purpose of competition policy is to protect the interests of customers and consumers from the predatory effects of dominant suppliers and the establishment of cartelised operations.

“The experiences, frustrations, and dissatisfaction of large swathes of European business with the behaviour of global shipping lines demand a change in approach as a means of restoring trust and confidence in the container shipping industry, which is vital to the economies of member states and meeting the needs of European consumers and businesses.”

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