Shippers are fearing that the contraction or consolidation of the shipping market into a very small number of tightly knit alliances, and the use of much larger ships, will reduce their choice of carrier and the quality of the services delivered.
The shippers argued that carriers operating within such arrangements cannot compete amongst themselves with regard to the agreed capacity, sailing frequency, transit times, ports of call and service level.
The ESG has joined GSF to promote the findings of a new research and analysis, titled ‘The Implications of Mega-Ships and Alliances for Competition and Total Supply Chain Efficiency: An Economic Perspective’, commissioned by GSF.
The GSF paper makes a series of recommendations to competition authorities and regulatory bodies around the world to mitigate the possible implications for competition in key liner trades arising from a reduced pool of competing carriers.
It offers a range of options for national and regional competition authorities on how to approach the regulation and oversight of the new shipping alliances. Some of the options include ensuring sufficient and independent competition on key trade routes, repealing existing exemptions from antitrust laws and implementing monitoring of alliances.
“GSF has made the voice of shippers heard in the UN agencies responsible for the regulation of the maritime sector and supported many of its member associations in advancing more transparent regulation of the container shipping industry in their home markets,” said Bob Ballantyne, chairman of GSF.
“ESC, with its network of contacts in the European institutions, will bring further pressure to bear in the key European liner markets,” said Ballantyne.
Denis Choumert, chairman of ESC, commented: “ESC is pleased to be working with GSF on this critical issue of the necessary evolution of the structure and regulation of global container shipping.”
Both chairmen call for shippers to respond to these threats and opportunities in a co-ordinated way and hope that shippers’ associations around the world will be able to use the findings and the analysis of the paper in their representations to their own governments on behalf of their members.
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