ESC pleased with conference exemption report
The European Shippers’ Council has reacted favorably to an assessment report published Monday on the impact of repealing exemption for liner shipping conferences.
The ESC said the report, published by independent consultancy firm Global Insight, “represented a complete endorsement of everything the ESC had previously argued as to the negative effects of the liner conference system and the benefits that would ensue from its repeal.”
An EC press release highlights the main findings of the 261-page report as:
* Transport prices for liner shipping services would decline.
* Service reliability on deep sea and short sea trades would be expected to improve.
* Service quality would either be unaffected or would improve.
* There would be either a positive impact or no impact on the competitiveness of EU liner shipping firms.
* Small liner shipping carriers would not experience particular problems.
* No negative impact or even a positive impact expected on EU ports, employment, trade and /or developing countries.
“This report shows that everyone wins from a repeal of the block exemption, shippers, ocean carriers and consumers alike. We should not be surprised that an independent assessment should conclude that removing a cartel would result in price reductions, greater efficiency in the industry, better services and greater competition,” said Nicolette van der Jagt, ESC secretary general.
The ESC also clarified its outright opposition to any replacement system such as the recent proposal by the European Liner Affairs Association to introduce an alternative information exchange system. “Such is the strength of feeling among members over this misinterpretation of their intentions that it has become necessary to restate that there has been no change in our position ' We reject any form of collective surcharge setting or common calculation by the lines, however transparent they claim it is,” the ESC said.