In the recent past, the British International Freight Association (BIFA) has said that its members 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.
Steve Parker, director general of BIFA, commenting on the recommendation that the CBER deal should lapse, said: “The decision follows October’s news that the European Commission would not extend the Consortia Block Exemption Regulation (CBER) and, if it becomes a final decision, will be a sensible conclusion to the ongoing container market public consultation that has been conducted by the CMA since the start of this year.
“When the CMA announced the review in January this year, BIFA expressed our surprise that the authority appeared to issue a provisional position which suggested the extension of a potentially modified CBER into UK legislation. So, we are pleased that the CMA has effectively reversed that decision and reached the same conclusion as the European Commission.”
He added: “However, we note that this is a two-stage review, and the CMA is looking for further feedback by December 15 on this provisional recommendation, before it presents its final decision to the Secretary of State for Business and Trade.
“There is no room for complacency. The shipping lines have hit out against the EC judgement and we understand that they have been lobbying in London for the UK to retain some form of CBER. Given the possibility that the shipping lines will make new submissions to the CMA, BIFA will be working with our members to provide further argument that supports the decision to let the CBER lapse.”
The association said that its members want to ensure that there is a suitable balance between shipping lines as carriers, and its members as customers; points it has made during various meetings with the CMA. The CMA’s provisional recommendation suggests that 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.
