Press release

Find and define the problem first, then seek the solution! That is the clear 'Way Forward' proposed by the European Shippers' Council in its response to the Revised Proposals from the carrier group, the ELAA.

As the main organisation in Europe representing shippers' interests in the area of freight transport, including international liner shipping freight services, the European Shippers' Council (ESC) welcomes the Commission's assessment of the ELAA proposals for a system of information exchange.

ESC's Secretary General Nicolette van der Jagt said: 'Along with our members and their individual shipper members, we have spent what seems endless hours discussing the proposals of the ELAA and the analysis of the EC's Directorate General for Competition as presented in their 'issues paper'. After long debate, the ESC felt it had no choice but to reject the revised proposals as a package and the majority of the proposals individually. Even those that we did tentatively accept were done so on the condition of numerous safeguards, and the net value of which was so negligible as to conclude they too should be rejected. With the repeal of the liner shipping block exemption, there are huge benefits from greater competition and the removal of conference practices and mind-sets; all this could be completely undermined by these proposals from ELAA. '

Where the ELAA have gone so wrong is to suggest a system of information exchange before even identifying what and where the critical problems are that might actually require information that doesn't already exist in the public domain. What we are proposing is to sit down with all the stakeholders and identify very real issues that inhibit efficient liner and door-to-door services; to carefully define these and isolate the causes. Then, and only then, can we collectively seek solutions; and if (and it's a big 'if') enhanced information of a particular type is required to help resolve the problem, then we work out how best to provide it.

'The ESC has been accused by the lines of deliberately seeking to discredit the proposals, and not representing the true interests of shippers. This is wrong: we consult shippers all the way. What benefit would we have in deliberately undermining initiatives that were good for our members – the very people that we represent?

'Our rejection of the ELAA revised proposals is made on the same grounds as the Commission's rejection: the proposals would be bad for shippers, bad for the economy, and bad for Europe, and (once the liner shipping conference block exemption has gone in October 2008) would be unlawful under European Union competition law.

'The carriers have been making some welcome statements recently about wanting to move away from price fixing and wanting to work with shippers to improve the services offered. It is time to stop talking; it is time for them to take action. One of the first things they could do to show they mean what they say is to reject actions taken by the likes of the Far Eastern Freight Conference (FEFC) that recently announced a continuation of a peak season surcharge - a preposterous attempt to increase prices on the grounds that they are so busy earning revenue with near-full ships, maximizing their revenue earning potential, that they need to raise prices to cover the extra costs of handling the extra business! This is what we could expect in the future, only much, much worse if the lines shared volume and capacity data across the trades around the globe as the ELAA proposal seeks.

ESC cannot sit by and let this happen. That is why after many weeks discussing the matter we have rejected the ELAA proposals. We welcome the recent sentiment from the ELAA about co-operation and working together to solve problems, but it is time for the carriers to stop just talking the talk, and begin walking the walk!

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