The European Commission has launched a public consultation until November 21, to garner views from the maritime industry on a draft regulation that is proposing to change the way the EC calculates maximum market shares for carrier consortia and shipping alliances.
The European Union's executive arm is proposing to combine the market share controlled by all carriers that are in any form of overlapping alliance, slot-exchange or vessel-sharing agreement, to count it as a single market share, a report by the Journal of Commerce Online said.
It said that a collective market share amounting to more than 30 per cent on any trade route could force consortium members to go through a complex legal process called "self-assessment" to ensure that they aren't acting in violation of anti-competition laws in Europe.
The report noted carriers have expressed concerns that this proposal would prove impractical as it would undermine their ability to share ships.
Following the completion of the consultation exercise, the EC will consult European Union member states in 2009 before adopting the final block exemption in advance of the April 2010 expiration of the current regulation, the report said.
"It is time to adjust the block exemption for liner shipping consortia to current market practices in the liner industry and to current antitrust law," EC Competition Commissioner Neelie Kroes was quoted as saying.
"The proposed changes take into account the necessary amendments due to the repeal of the liner conference block exemption regulation that went into effect October 18," the EC said.
The European Union's executive arm is proposing to combine the market share controlled by all carriers that are in any form of overlapping alliance, slot-exchange or vessel-sharing agreement, to count it as a single market share, a report by the Journal of Commerce Online said.
It said that a collective market share amounting to more than 30 per cent on any trade route could force consortium members to go through a complex legal process called "self-assessment" to ensure that they aren't acting in violation of anti-competition laws in Europe.
The report noted carriers have expressed concerns that this proposal would prove impractical as it would undermine their ability to share ships.
Following the completion of the consultation exercise, the EC will consult European Union member states in 2009 before adopting the final block exemption in advance of the April 2010 expiration of the current regulation, the report said.
"It is time to adjust the block exemption for liner shipping consortia to current market practices in the liner industry and to current antitrust law," EC Competition Commissioner Neelie Kroes was quoted as saying.
"The proposed changes take into account the necessary amendments due to the repeal of the liner conference block exemption regulation that went into effect October 18," the EC said.