Singapore extend block exemption for liners until 2015

Time:2010-09-21 Browse:42 Author:RISINGSUN

SINGAPORE`s Competition Commission is advising the Minister for Trade and Industry to extend a block exemption for liner shipping antitrust immunity by five years until the end of 2015.

This comes as the current block exemption is due to expire at the end of this year. The recommendation by the Competition Commission would continue to allow ocean liners to collaborate on rate setting and capacity issues on trades to and from Singapore.


"Shipping is a global trade and CCS notes that antitrust exemptions remain the regulatory norm for the liner industry globally, and for most of Singapore`s major trade partners," the commission said. "In its recommendation of the block exemption order (BEO) to the minister in 2006, CCS noted the possibility of imminent changes in the immunity status of conference type activities under competition law in several jurisdictions. Since then one notable change has been the European Union." The EU outlawed liner antitrust immunity in 2008.


"CCS has considered the changes in the international regulatory environment carefully in its review. In view of the global economic downturn that has impacted the liner industry significantly, CCS is of the view that more time is required to assess the impact of regulatory changes in the EU. It is also important to recognise that there are other routes through Singapore which will not be affected by regulatory developments in the EU."


The commission`s chief argument for maintaining the block exemption is to help preserve Singapore`s status as a maritime hub for container shipping.


"CCS is of the view that the rationale for the BEO in 2006 remains relevant," the commission said. "As a small and open economy, the presence of an extensive network of liner shipping companies has played a large part in contributing to Singapore`s status as a premier international maritime centre for liner shipping operations."


The CCS is accepting comments on its proposal until October 4. It said it arrived at its decision to recommend extending the block exemption after consulting with more than 30 trade associations, regulators, individual shippers, ocean liners and logistics service providers, reports American Shipper.