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Summaries of EU Legislation

Sea transport – supply of services, competition, unfair pricing and access to ocean trade

SUMMARY OF:

Regulation (EEC) No 4055/86 applying the principle of freedom to provide services to maritime transport between EU countries and with non-EU countries

Regulation (EEC) No 4057/86 on unfair pricing practices in maritime transport

Regulation (EEC) No 4058/86 on coordinated action to safeguard free access to cargoes in ocean trades

Regulation (EC) No 1/2003 on the implementation of the rules on competition laid down in Articles 81 and 82 of the Treaty

Regulation (EC) No 246/2009 on the application of Article 81(3) of the Treaty to certain categories of agreements, decisions and concerted practices between liner shipping companies (consortia)

WHAT IS THE AIM OF THE REGULATIONS?

The aim of the regulations is to organise maritime transport in accordance with the basic principles of European Union (EU) law to provide services, competition and free access to the market in sea transport.

KEY POINTS

Freedom to provide services

Regulation (EEC) No 4055/86:

  • grants EU nationals (and non-EU shipping companies using ships registered in an EU Member State and controlled by EU nationals) the right to carry passengers or goods by sea between any port of a Member State and any port or offshore installation of another Member State or of a non-EU country;
  • requires any national restrictions that reserve the carriage of goods to vessels flying the national flag to be phased out or adjusted, and prevents the introduction of new restrictions;
  • sets out a procedure for cases where Member States’ shipping companies have no effective opportunity to carry goods to and from a particular non-EU country;
  • extends the benefits of the regulation to non-EU nationals established in the EU.

Regulation No 3577/92/EEC deals specifically with the freedom to provide services in sea transport within Member States (maritime cabotage1) (see summary).

Unfair pricing in maritime transport

Regulation (EEC) No 4057/86:

  • authorises the EU to apply redressive duties in order to protect shipowners in Member States from unfair pricing practices on the part of non-EU shipowners – these redressive duties can be imposed after an investigation that demonstrates that injury has been caused by unfair pricing and that the interests of the EU make intervention necessary;
  • concerning the examination of injury, lays down the appropriate factors or indicators to be taken into consideration, for example a reduction in the shipowner’s market share or profits, or the effect on employment;
  • lays down a procedure for complaints, consultations and subsequent investigations.

Free access to ocean trades

Regulation (EEC) No 4058/86:

  • applies when action by a non-EU country or by its agents restricts free access to the transport of liner cargoes, bulk cargoes or other cargoes by the shipping companies of a Member State or by ships registered in a Member State (except where such action is taken in conformity with the United Nations liner code);
  • allows for coordinated action by the EU following a request made by a Member State to the European Commission – such action might include diplomatic representation to non-EU countries and countermeasures directed at the shipping companies concerned;
  • permits similar coordinated action to be taken at the request of another country belonging to the Organisation for Economic Co-operation and Development with which a reciprocal arrangement has been concluded.

Competition rules

General EU competition laws laid down in Regulation (EC) No 1/2003 also apply to the EU maritime transport sector. However, in accordance with Regulation (EC) No 246/2009, the Commission may make exceptions for certain types of cooperation between liner shipping2 companies (consortia3).

FROM WHEN DO THE REGULATIONS APPLY?

  • Regulation (EEC) No 4055/86 has applied since .
  • Regulations (EEC) Nos 4057/86 and 4058/86 have applied since .
  • Regulation (EC) No 1/2003 has applied since .
  • Regulation (EC) No 246/2009 has applied since .

BACKGROUND

For further information, see:

KEY TERMS

  1. Cabotage. Where a company that transports goods, registered in one Member State, carries out national transport in another Member State.
  2. Liner shipping. Regular transport of goods on a particular route or routes between ports, at previously advertised dates and times, and available to any paying transport user, even if on an occasional basis.
  3. Consortia. Agreements (or sets of agreements) between two or more shipping carriers that provide international liner shipping services solely for carrying cargo relating to one or more trades. Their purpose is to provide a joint maritime transport service that is better than the service that each of its members could have offered individually (i.e. without the consortium).

MAIN DOCUMENTS

Council Regulation (EEC) No 4055/86 of applying the principle of freedom to provide services to maritime transport between Member States and between Member States and third countries (OJ L 378, , pp. 1–3).

Successive amendments to Regulation (EEC) No 4055/86 have been incorporated into the original document. This consolidated version is of documentary value only.

Council Regulation (EEC) No 4057/86 of on unfair pricing practices in maritime transport (OJ L 378, , pp. 14–20).

Council Regulation (EEC) No 4058/86 of concerning coordinated action to safeguard free access to cargoes in ocean trades (OJ L 378, , pp. 21–23).

Council Regulation (EC) No 1/2003 of on the implementation of the rules on competition laid down in Articles 81 and 82 of the Treaty (OJ L 1, , pp. 1–25).

See consolidated version.

Council Regulation (EC) No 246/2009 of on the application of Article 81(3) of the Treaty to certain categories of agreements, decisions and concerted practices between liner shipping companies (consortia) (Codified version) (OJ L 79, , pp. 1–4).

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