Document

From its historic first gathering in Brussels, Belgium, the Tripartite Shippers’ Meeting in Margaux, France celebrated its 10th anniversary. This year’s event evidenced a three-fold increase in the number of participating delegations as compared to that first session. This meeting represented freight transportation professionals from the largest trading areas in the world.

Over its first decade, the Tripartite Shippers’ Group (TSG) has had a profound impact on both national and international transportation and trade policies and its actions have proven beneficial in achieving a more competitive and efficient world freight transportation system. Building on this proud record, the TSG looks forward to achieving even greater accomplishments today and into the future.

Freight Transportation and Security

A continuing challenge for the TSG is the need to support new security initiatives that are effective in protecting the world’s supply chain from terrorism, without those same measures serving to cripple the very system they are designed to protect. The TSG agrees that our respective governments and industries must work as partners to ensure that new security standards will meet their intended purposes without impeding the efficiencies and economies of scale that shippers have come to rely upon. To the most practicable extent possible, these security measures must be compatible and fashioned in such a way so that world commerce is not made the unintended victim in this process.

Transportation security continues to be a high priority concern for the TSG. The TSG supports:

Programs that identify “high risk” cargoes that could present a threat to life, infrastructure and the over-all supply chain;
Promotion of new technologies which will supplement existing security safeguards;
Advancement of automated advanced cargo manifest systems that are predicated on moving freight seamlessly;
Making security measures compatible over all transportation modes;
Establishing a Standard Security Framework for the world’s major trading partners, and,
Programs which will produce a safe and secure supply chain in which the costs are equitably shared among all parties involved.

Maritime Regulatory Reform

Now that relatively recent advancements have brought about changes in North America resulting in a freer and more competitive ocean liner transportation environment, the TSG intends to focus its efforts on the European Union where the European Commission has opened a formal review into Europe’s regulation regarding antitrust immunity for ocean liner conferences.

The TSG pledges to support the review of Council Regulation 4056/86, the main competition rule in Europe governing maritime transport. Specifically, TSG members will work through appropriate channels in providing the Commission with empirical data on the effects of Europe’s current regulatory structure on shippers. The objective of the Commission’s review should be to bring about reforms which recognize that pricing should be individually set based on a carrier’s individual costs calculated with a fair return on investment and reasonable profit.

The TSG feels that the EU’s deliberations into its liner regulatory framework should proceed as deliberately and expeditiously as possible.

Conferences/Discussion Agreements

The TSG believes that the primary function and role of conferences and discussion agreements have far outlived their original purpose. In today’s marketplace, collective pricing for services has been eliminated in every other industry except liner shipping. The TSG reaffirms its support for the elimination of this extraordinary privilege of limited antitrust immunity that permits liner conferences and discussion agreements to set rates and services.

Surcharges and Terminal Handling Charges

The TSG reaffirms its support for valid and impartial justification for all surcharges at all local, national and international levels. These mechanisms cannot and should not be used to impose general rate increases (GRIs).

The TSG calls for the reincorporation of Terminal Handling Charges (THCs) into the ocean freight rates and for more transparency on the components of THC where requested by shippers. Assuming the THC is part of the overall freight, it should be collected from the party that pays the freight.

Maritime Safety

The sinking of the tanker “Prestige” in November, 2002 and the “Erika” before that has challenged the international freight transportation industry to try to minimize the risk of similar incidents which are detrimental to life, the marine environment and livelihood of thousands. The TSG strongly supports incentives which would minimize such incidents. These include:

Banning the use of substandard ships that do not meet standards after inspections;
Use of “best practices” which would prevent use of substandard shipping;
Intensify port state control inspections;
Reduced insurance premiums for ship owners who demonstrate that individual ships present minimum risks; and,
Adoption of universal standards for ships based on age of vessel.
Support for the recommendations offered by the Organisation for Economic Cooperation and Development (OECD) for reducing incidents caused by substandard shipping.

The TSG will jointly communicate its positions to all appropriate authorities and invites other organizations to join it in these efforts.

Ocean Carrier Liability - Support for An International Convention

The TSG has long supported the enactment of a compatible international cargo liability regime that takes into account today’s developments in transportation and logistics.

Negotiations currently underway by the UNCITRAL Working Group on Transport Law could result in the adoption of a new convention on cargo liability. Since the TSG supports harmonization of international cargo liability laws as well as efficiency and uniformity in international trade, the TSG agrees that the following positions should be supported by their national governments. These positions to be advocated by national governments should include the following:

Scope of Application: The instrument should be a door-to-door regime applied on a uniform liability basis as between the contracting parties, subject to a limited network exemption;
Performing Parties: In addition to establishing the liability regime between contracting carrier and the cargo interests, the new convention should provide substantive liability rules for “maritime performing parties”;
Elimination of Nautical Fault/Error of Navigation;
Freedom of Contract for Ocean Liner Service Agreements (OLSA);
Forum Selection should permit the claimant to choose place for litigating or arbitrating claims. This provision is similar to those provided in Hamburg Rules;
Parties to an OLSA should have ability in writing to derogate from the convention;
Compensation for delay (unless otherwise agreed upon) should be limited to physical loss or damage;
Qualifying Clauses - Shipper load and count clauses should be treated as valid under the convention;
Burden of Proof - Support for a more balanced and workable approach towards dealing with partial carrier fault; and,
Other - The instrument should clarify the concept of “deviation” and should include a provision to address misdescriptions of cargo.

Regulatory Wood Packaging Materials

The TSG supports efforts at regulating the use of solid wood packaging materials that are associated with the spread of undesirable pests and insects via international trade. The TSG appreciates the economic and environmental consequences that would result in the absence of appropriate rules governing the use of certain wood packaging.

To allow for an orderly transition of the rules into force and effect, the TSG supports a minimum adjustment period of at least six months, during which parties responsible for complying with the new rules will have the necessary time to familiarize themselves with the new requirements.

International Air Transport Association’s Resolution 502

The TSG reaffirms the position of the group adopted at the 2002 meeting opposing implementation of IATA Resolution 502 targeting low density cargo.

As with ocean conferences and agreements, the TSG believes pricing for air cargo should be made individually by carriers based on “marketplace” considerations. Pricing schemes based on those protected from the antitrust laws results in poor business practices and severe impairment for users. The TSG will continue to oppose this effort and will communicate on matters of particular significance.

Development of Global Air Performance Standards

The TSG supports an audited air cargo service with the ability to benchmark these services. In keeping with these objectives, the TSG supports the Cargo 2000 program which seeks development of Performance Indicators (KPI’s/SPI’s) that will lead to a meaningful and quality system that will result in lower costs and substantial customer service improvements. The TSG invites and encourages all sectors of the industry to support these efforts.

Liberalisation of Air Transport

The TSG supports liberalization of air transport that results in improved service for air freight shippers. In expressing this support the TSG expects an early determination of this result.

This year’s 2003 annual Tripartite Shippers’ Meeting marks an historic milestone for the international freight transportation industry. Its work has proven to be a positive force on the world stage and continues to be a resource to both government and industry.

The TSG intends to broaden its influence in the years ahead by inviting other shipper groups to join its ranks. Working together the TSG is likely to produce beneficial changes that will only serve to enhance world trade for today and into the future.

For further information contact: Nicolette van der Jagt, Secretary General of the ESC - Brussels 00 322 230 2113