Competition Law and Shipping - Sudden Climate Change

Article by Dr. Bertold Bär-Bouyssière, LL.M., and Mr Mike Pollen, Global Head of Marine

New EU Competition Law

Shipping has historically been sheltered from the full force of EU competition law. For the past 20 years, EU Block Exemption Regulation 4056/86 has allowed liner conferences to fix prices and regulate capacity. Some shipping companies were fined for fixing prices outside liner conferences. Most non-conference shipping activities completely avoided the reach of competition law. All this however is set to change.

On 25 September 2006, the EU Council agreed that the block exemption will no longer apply and that price fixing and capacity regulation in liner conferences will not be permitted as of 1 October 2008. Liner operators have thus been given a transitional period of two years in which to fall into line with the new regime. However, EU antitrust rules will apply immediately to tramp shipping and cabotage - no formal transition period has been granted.