On Tuesday, 24 March, the European Commission decided to extend the regulation defining the conditions under which liner shipping consortia (liner shipping) can provide joint services without infringing EU antitrust rules for another 4 years, until 25 April 2024.
In general, EU law prohibits agreements between companies that restrict competition. However, the Consortia Block Exemption Regulation allows, under certain conditions, liner shipping operators whose combined market share is below 30% to enter into cooperation agreements to provide joint liner shipping services in the cargo transport sector (‘consortia’). These agreements may not, however, include price fixing or market sharing.
In September 2018, the Commission launched a public consultation and carried out an evaluation of the exemption regulation in question (see EUROPE 12105/19).
The evaluation of this consultation showed that, despite developments observed on the market, the Consortia Block Exemption Regulation remains fit for purpose and delivers on its objectives. Moreover, the Commission considered that the exemption regulation generates efficiencies for carriers, which can make better use of vessel capacity and offer more connections.
Lower prices for customers. The exemption applies only to consortia whose market share does not exceed 30% and whose members are free to price independently.
In this context, these efficiencies result in lower prices and better quality of service for consumers.
The evaluation showed that, in recent years, costs for carriers and prices for customers per twenty-foot equivalent unit (TEU) have decreased by approximately 30% and that quality of service has remained stable.
Link to the regulation of 24 March: https://bit.ly/2vMAsjZ (Original version in French by Lionel Changeur)