Written Simon Harms and Stephen C. Tupper

Many in the shipping industry will recall the heated debates leading up the decision of the European Commission (the “Commission”) to repeal the block exemption for liner shipping conferences in 2008 (the “Repeal”), thereby opening the container trades to the same competition law enforcement regime that applies to other sectors of the wider economy.

Nearly three years on, shipping operators may have been forgiven for wondering what all the fuss was about. What, if anything, had changed in practice? The answer, until very recently, was: not very much. Following the Repeal, the Commission did not appear particularly keen to pursue liner shipping. Shipping operators meanwhile – by and large – maintained, superficially at least, traditional operating models.

The cosy status quo, however, may be about to change: in May 2011, the Commission launched an investigation into the container liner shipping sector. Its focus is reportedly on agreements entered into after the Repeal came into force. The Commission’s investigation is at an early stage and it is yet to be seen whether it is “merely” conducting a temperature check which may result in “tweaking” such agreements or whether the investigation will develop into a full-scale cartel probe. The use of unannounced inspections – or “dawn raids” – at the premises of a number of key operators suggests the Commission is serious but much will depend on the quality of the evidence gathered.
Continue Reading EU Competition: liner shipping conferences back on the Commission’s radar