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Shipping firms lobby government
  Date:01/28/10  |  From:cargonewsasia  |  Click:

Global container shipping firms are lobbying with the government for exempting voluntary discussion and vessel-sharing agreements between carriers from India's anti-competition law, the Bharat Observer reported.

The economics of container shipping service in India calls for a regulated system of carrier discussion and vessel-sharing groups to provide reliable services at reasonable and predictable prices to exporters and importers, says a study conducted by UK maritime consulting firm Drewry Shipping Consultants Ltd. Drewry was hired by the Center for Asia Studies, a Chennai-based think tank.

Voluntary discussion and vessel-sharing agreements are not the same as liner shipping conferences-a group of container shipping firms that offer equitable freight rates, standardised shipping practices and regular scheduled services between designated ports. Member lines of such conferences agree on freight rates irrespective of market conditions, a decision that is acted upon by all the members.

The Competition Commission of India prohibits shipping conferences because it considers price fixing and market sharing as cartelisation.

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