Exemption for certain agreements between liner shipping companies (“consortia”)

Consortia, as defined in this Regulation, enable liner shipping companies to rationalise their operations and improve the quality of maritime transport services. Such agreements should therefore enjoy block exemption from Community competition rules, provided that they do not give the companies concerned the possibility of eliminating competition in a substantial part of the trades in question.

ACT

Commission Regulation (EC) No 823/2000 of 19 April 2000 on the application of Article 81(3) of the Treaty to certain categories of agreements, decisions and concerted practices between liner shipping companies (consortia) (Text with EEA relevance) [See amending act(s)].

SUMMARY

Exemptions from Community competition rules are applicable to consortia set up between companies which cooperate in jointly operating a maritime transport service. The members of such consortia provide regular international liner shipping services for goods only, generally using containers, in one or more trades.

Scope

The exemptions in this Regulation apply, subject to certain conditions, to consortia providing international liner shipping services from or to one or more Community ports. More specifically, the activities covered are as follows:

• the joint operation of maritime transport services;
• temporary capacity adjustments;
• the joint operation or use of port terminals;
• participation in one or more of the following pools: cargo, revenue or net revenue;
• the exercise of voting rights held by the consortium in the conference within which its members operate;
• a joint marketing structure and/or the issue of a joint bill of lading.

Conditions for exemption

Provided that there is effective competition in terms of price and services provided, a consortium must, in order to benefit from the exemption, possess on each market in which it operates a market share of under 30% calculated by reference to the volume of goods carried when it operates within a conference, or under 35% when it operates outside a conference.

In addition, consortia must allow their members a degree of independence, such as the right to offer their own arrangements and services, to withdraw from the consortium without financial penalty and to engage in independent marketing. Consortia and their members must not cause detriment to Community ports, users or carriers.

Obligations

Consortia wishing to benefit from the Regulation must demonstrate to the Commission that they consult their users on important matters and that the conditions of their maritime transport services are made available to users at reasonable cost.

Background

Following the entry into force of Regulation (EEC) No 479/92, which empowered the Commission to grant block exemptions in respect of certain categories of agreements, decisions and concerted practices between liner shipping companies (“consortia”), the Commission adopted Regulation (EC) No 870/95 to establish the conditions under which such exemptions would be granted; that Regulation was later replaced by Regulation (EC) No 823/2000.

RELATED ACTS

Council Regulation (EEC) No 479/92 of 25 February 1992 on the application of Article 85(3) of the Treaty to certain categories of agreements, decisions and concerted practices between liner shipping companies (consortia) [Official Journal L 55 of 29.2.1992].

This Regulation empowers the Commission to grant block exemptions in respect of certain categories of agreements, decisions and concerted practices between liner shipping companies (“consortia”).

Last updated: 21.03.2008