Chinese shippers urge China to scrutinise vessel sharing agreements

2014-10-09

CHINA Shippers' Association (CSA) has called on Beijing to heighten scrutiny of vessel sharing agreements with an eye to anti-trust violations.

Lack of enforcement of an otherwise rigorous competition regime in the Regulations on International Maritime Transportation, is the problem, said CSA vice-chairman Cai Jiaxiang.

"The regulations are sound, but they are not enforced," Mr Cai told Lloyd List in an interview. "The Ministry of Transport needs to build a strong statistical system to enforce them."

Having given approval of the vessel sharing agreements, China finds it harder to punish infractions, he said.

"China regulatory regime is weak because no one is enforcing the rules. I think what the EU does is a good example - allowing more feedbacks from shippers," said Mr Cai.

"The word from 2M [vessel sharing agreement] is, they won deploy more than 30 per cent of total market share, but we抣l see. From what I know, Maersk itself would be capable of that," Mr Cai said.

Also, Mr Cai pointed out price fixing or signalling - which could occur inside or outside of alliance operations - is particularly harmful to fair competition.

Source from : www.schednet.com

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