Vessel-Sharing Agreements And The Boundaries Of Competition Law Enforcement

The proposal by the Ministry of Ports, Shipping and Waterways to exempt vessel-sharing agreements from the operation of the Competition Act, 2002 ("Act") has reopened a long-standing policy debate at the intersection of competition law and sector specific regulation. Vessel-sharing agreements are commonly entered into by liner shipping companies to pool capacity and optimise routes but occupy a legally sensitive space. While they are operationally distinct from horizontal agreements as envisaged in the Act, their structural similarity has consistently attracted scrutiny. India has historically oscillated between competition enforcement and sectoral accommodation. Temporary exemptions have been granted in the past only to lapse and be reconsidered again in light of market conditions and industry representations. The current proposal addressed to the Ministry of Corporate Affairs seeks renewed exemption on the premise that vessel-sharing agreements are essential for