THE European Liner Affairs Association (ELAA) has told the European Commission it supports both the review of the EC Regulation on consortia, and the commission's recent statements that this will result in a new block exemption.
The ELAA outlined in its submission recommendations to be included in the review of Regulation 823/2000 which grants block exemption for liner shipping consortia.
It said the ELAA believes that the review is critical as a renewed Block Exemption Regulation (BER) for consortia, along with up-coming Commission Guidelines for the application of competition rules, will give the liner industry a solid framework for operation as it adapts to a regulatory environment post the demise of liner conferences in Europe.
The ELAA noted that the current BER 823/2000 was last reviewed by the Commission in 1999, and consequently the ELAA would like to see the regulation take into account changes in the operational nature of the liner shipping industry and consortia in particular.
Chris Bourne, executive director of ELAA said: "I am pleased that consortia are here to stay as they make sense for all parties. All the lines use consortia and in many cases they are the only way in which smaller lines can remain competitive.
"Our customers are in support of consortia as they help to maintain high levels of port choice and service during periods of variable market demand. Environmental contingencies are also well catered for as a result of the efficiencies created by consortia operation."
There are two main areas where the current BER needs updating, according to the ELAA. It said in the release that "references to Regulation 4056/86 and Liner Conferences must clearly be deleted and the scope over which consortia are allowed to operate needs to be extended to reflect the growth in volume and trades that has occurred over the last ten years."
The ELAA also suggests the abolition of joint Bills of Lading, which it claims are obsolete and serve to make the legislation unnecessarily complex. "On certain trades market share thresholds above which a consortium is barred from operating, are too low for practical purposes. In addition, the 36 month limit to consortia agreements is also impractical these days as vessel owners and capital providers are demanding commitments of much greater length than this," said Mr Bourne.
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Source: schednet
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