Monday, 17 September 2007 00:00
By Katherine EspinaSept. 18 (Bloomberg) -- A global shippers' group is calling on Asian countries to review laws to end collective price fixing for rates and services through liner conferences and agreements.
Liner conferences are formed when two or more shipping lines offer a joint service and agree on a common freight rate to shippers, their customers.
``Most Asian countries have adopted a spectator role, watching the statutory and regulatory advancements made in both Europe and North America,'' the Global Shippers' Forum said in a statement today. ``It is time for all Asian countries to examine their own laws and regulations, in order to bring about market- based principles designed to increase competition.''
The group said Asia should follow the example set by European governments, which ended rules that let shipping companies, including A.P. Moeller-Maersk A/S and Hapag-Lloyd AG, fix prices for almost two decades.
European Union industry ministers agreed unanimously in September last year to abolish an antitrust exemption for liner conferences. The decision takes effect in October 2008 and covers shipping into or from the 25-nation EU.
Abolishing the conferences will let customers negotiate directly with ship owners for carriage of freight.
``The Asian region is lagging behind on antitrust reform and we are in a very dire situation that shippers are at the mercy of the liner cartel movement,'' John Lu, chairman of the Asian Shippers' Council, told reporters in Singapore. ``Price fixing is not fair and it's against free trade.''
Cargo Screening
The Asian Shippers' Council represents cargo owners and exporters in 18 countries, excluding Japan. The Global Shippers' Forum is the largest trade group representing retailers, manufacturers and wholesalers worldwide from over 50 countries.
The global shippers group also reiterated their concern over a U.S. law requiring screening of all ship cargo, saying it will divert vital funding from existing programs that have been proven effective in thwarting attacks on seaborne trade.
The U.S. Congress passed a bill July 27 to enact recommendations from the Sept. 11 commission, including the requirement within five years to scan all cargo before it departs for the U.S.
