Increased Antitrust Scrutiny Of The Ship Lining Industry: Tailwinds Of Global Convergence

'Coordination amongst competitors' sounds anti-competitive at the first blush and yet one particular sector, i.e. the ship liners industry has seen exemptions from various antitrust regulators when it comes to cooperation amongst competitors by means of 'consortia'.¹ However, in the last three years, there has been a sudden surge of calls to increase antitrust scrutiny in this sector all across the globe.

Liner shipping services involve transporting goods and cargo from one destination to another by large ocean ships that move through regular routes on fixed schedules. This transportation involves substantial investments and are typically provided by multiple competing shipping companies operating together in consortia. These collaborative/ consortia arrangements include Vessel Sharing Agreements (VSAs)² and Slot Charter Agreements (SCAs)³ which offer various benefits, including economies of scale and efficient vessel space utilization which are benign for ship