Press release

The liner shipping industry should not be too despondent by the apparent rejection of, and concerns over many aspects of their proposals by the European Commission, Competition Directorate, as outlined in its recently published ‘issues paper’. This is the message from the European Shippers’ Council (ESC) that represents the interests of some 100,000 companies in Europe engaged in international trade.

Rather, the ESC believes, carriers can move ahead, by exchanging views with their individual customers, and through dialogue between the carriers’ representative organisations and the ESC, in order to find and develop best practice joint-initiatives that resolve many issues that exist for both parties.

The European Liner Affairs Association (ELAA) submitted to the Competition Directorate General of the European Commission (DG Competition) revised proposals for special authorisation to be given to a system of information exchange. This followed rejection by DG Competition of earlier proposals from the ELAA. In a document published last Friday 29th September, DG Competition again rejects aspects of the proposals as anti-competitive and perpetuating the liner shipping conference system – a system which is to have its block exemption from EU competition rules repealed in two years time. Equally, this sentiment was also the conclusion of the recently established ‘Global Shippers’ Forum’ (GSF) that met last week in Antwerp, Belgium. The GSF, comprising shipper representative organisations from around the world, remarked in a Joint Declaration following their meeting, “that the revised proposals by the European Liner Affairs Association (ELAA) represent a real risk of collusive activity.” The GSF has herewith echoed the position of the ESC which is that the system of information exchange proposed by the ELAA would perpetuate, and even enhance the present conference system by increasing the scope of the information exchange system and increasing the market coverage.

Nicolette van der Jagt, Secretary General of the ESC, said, ‘The rejection of the ELAA proposals, first by the ESC, then by the GSF, and now in large part by the European Commission’s services, does not mean the abandoning of any notion that dialogue can ensue, dialogue that fosters closer partnerships to tackle the key operational issues confronting shippers, carriers and other industry stakeholders. On the contrary; ESC feels much more relaxed about such dialogue and initiatives in an environment unconstrained by special privileges and authorisations that were otherwise being sought through the revised proposals of ELAA. ‘

A meeting held last week between the secretariats and members of the ESC and ELAA to explore how such dialogue could be progressed proved extremely productive and, we hope, paves the way for some very positive and constructive work together. The outcome of the meeting was reported to the GSF meeting, and the prospect of further dialogue on the real issues affecting supply chains was enthusiastically welcomed and encouraged, with the forum stating in its Joint Declaration:

“GSF firmly believes that all industry sectors must recognize the new competitive environment that now presents itself. Shippers, carriers and other stakeholders should embrace the new challenges and opportunities or else risk being left behind.”

‘This is a clear message to the carriers, that the future is theirs for the taking, and that together we can and will address the many issues that impede efficient operations within supply chains.’

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