Press release

The European Shippers' Council responded today to the European Commission's publication of the draft guidelines which have been drafted to align the treatment of the liner shipping sector with that of other industrial and service sectors in regard to their compliance with European Community competition law.

ESC will prepare a detailed assessment of the recently published draft ‘Guidelines' from the European Commission and will assist the Commission as it moves into the final stages of its work towards establishing appropriate competition guidelines for the liner shipping sector.

ESC strongly believes that the ‘Guidelines' should be general and not prescriptive in nature. The ‘Guidelines' should deliberately avoid allowing any specific activities beyond those already defined under EU competition law in the decisions of the European courts and Commission. Such an approach will ensure the necessary degree of caution in the liner shipping sector that self-governance on the application of competition law requires.

The draft guidelines clearly recognize that EC Competition Law does not permit carriers to exchange information which would allow carriers directly or indirectly to identify the competitive strategies of their competitors. There are numerous references throughout the document that urge caution among carriers over any activities that could be construed as reducing or removing “the degree of uncertainty as to the operation of the market in question with the result that competition between undertakings is restricted.” Equally there are very obvious warnings about discussions on information among the carriers and data that would or again could be construed as reducing the opportunity for individual carriers to make autonomous policy over its business strategy and activities.

ESC will closely monitor exchanges of information developed by the liner shipping sector for compliance with EU competition law and their impact on liner trades elsewhere.

ESC is looking forward to a liberalized market where carriers will be allowed to operate freely and determine their individual market strategies.

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