The UK’s Competition and Markets Authority (CMA) will not recommend to government that the current consortia block exemption regulation (CBER) be replaced by a UK equivalent when it expires on April 25, 2024. British International Freight Association (BIFA) members welcomed the developments.
CMA conducted a robust analysis of the deepsea container shipping market, investigating several scenarios, and concluded in November 2023 that the conditions did not warrant the continued existence of a CBER for UK maritime movements – the same view had already been reached by the European Commission.
CMA invited second opinions on its analysis and BIFA provided additional information to support its original arguments. The CMA has now upheld its original decision concluding that self-assessment is the best and most effective way for shipping lines to cooperate.
Steve Parker, director general of BIFA, said the decision, “is a sensible conclusion to the ongoing container market public consultation that has been conducted by the CMA since the start of last year.”
In the recent past, the BIFA’s members have often said they are extremely concerned that practices undertaken by container shipping lines, as well as easements and exemptions provided to them, have been distorting the operations of the free market to the detriment of international trade, businesses and consumers. “Whilst this regulatory change, if implemented, will not end shipping line consortia and alliances, it will allow greater and ongoing scrutiny of such arrangements; and ensure that the lines will be subject fully to competition law. That will be welcomed by BIFA and its members and we call on the secretary of state for business and trade to uphold the agency’s decision,” Parker added.
