Press release

ESC is greatly encouraged by the European Commission’s proposal to repeal Council Regulation 4056 of 1986 that has given shipping lines immunity from normal rules of competition. The Commission is now expected to come forward with a White Paper containing concrete proposals for Community action leading to the withdrawal of the current Block Exemption for liner shipping.

In a well argued paper published last week, the Commission unambiguously recommends the termination of the current block exemption for liner shipping for price fixing and supply regulation by liner conferences. The Commission writes that “the conditions for an exemption [to competition rules granted within Article 81(3) of the Treaty of Rome] would appear to be no longer fulfilled… On that basis, the Commission services would propose to repeal the present BE [block exemption] for liner shipping conferences.”

The Commission considers that there is no need to launch further economic studies and has told Member States that it intends move on to the next stage of the review process. The Commission maintains in its paper: “Realistic proposals on amendment of the BE have so far not been put forward, notably discussion agreements would not appear to provide for a less restrictive alternative.”

ESC’s Secretary General Nicolette van der Jagt said: ‘We fully support the position adopted by the European Commission. Regulation 4056/86 is untenable in the 21st century. The Commission has well listened to the views of the customers who have stressed that they are willing “to take the risk” of a competitive world. This is already partly happening in the increasing usage of individual and confidential contracting between customers and suppliers. This shows that shippers wish to be allowed to enjoy normal market forces. We look forward to letting customers and service providers in the container shipping sector get on with business in the normal way. We expect the liner shipping industry to become ever stronger without Regulation 4056.”

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