The Asian Shippers' Council (ASC) says that it has reasons to believe shipping lines are collectively reducing ship supply to push up freight rates, which is in direct contravention of the European Union anti-trust regulations.

"The Council, together with its counterparts in the Europe and the US, are monitoring the situation, especially with recurrent talk about capacity management.

If the capacity management is undertaken by lines individually, there is little we can do about it. The European Union, the only region which has outlawed liner cartels, has an on-going investigation into shipping lines following similar circumstances in 2008-2009," said Rohan Masakorala, Secretary General of the ASC commenting on the proceedings of the ASC's 8th Annual Meeting held in Hong Kong on November 6 this year.  The freight rate situation in container liner shipping has reinforced our need to take decisive action to bring about maritime regulatory reform.

At a time of slowing growth in Asia and the US, gross overcapacity and falling fleet utilisation, shipping lines are talking up and trying to force through steep freight increases, observed the Secretary General adding that in September, the Transpacific Stabilization Agreement (TSA) proposed a hefty rate hike of US$800 to US$1,200 per FEU (Forty-foot Equivalent Unit) starting in mid-October for all new and renewed contracts.

The 8th annual general meeting of the Asian Shippers' Council (ASC), hosted by the Hong Kong Shippers' Council, was attended by 20 delegates from seven countries across Asia - China, Hong Kong, India, Macau, Singapore, Sri Lanka, and South Korea.

At the one-day meeting delegates discussed at length the grave economic challenges facing the world today and their implications for shippers, the incomprehensible freight rate increase imposed by shipping lines and the critical need for maritime regulatory reform in Asia.

Expressing the ASC views on maritime regulatory reform, Masakorala said that in Asia, it had gained added urgency. Pushed to show profits even in this harsh environment, shipping lines were increasingly setting their sights on Asia, the region with the best growth potential.

"The cartels, while not visible, are active throughout the region. With no maritime regulatory oversight, they can operate with impunity, keeping rates and surcharges at unacceptable levels," said the ASC official and pointed out that until now ASC's efforts at bringing about reform had run into strong headwinds. Even countries with Competition Act like Australia and Singapore have seen the need to offer special dispensation to shipping lines, he said.

Pointing out that recent developments in New Zealand had given the ASC reasons to believe that the tide may be changing in their favour, Masakorala said that following a review of the country's International Freight Transport Services, the New Zealand Productivity Commission in April had recommended repeal of current exemptions for shipping companies from the Commerce Act.

"We understand the government has accepted the recommendation and is now investigating interim proposals to remove antitrust immunity for liner conferences," said the ASC official.

"Together with the Global Shippers' Forum, we are extending our fullest support to the New Zealand Shippers' Council and the New Zealand government to work towards this end. We believe New Zealand's decision would have far reaching consequences, creating pressure for reform elsewhere in the region," Masakorala pointed out.
 

منبع: مجله Maritime News