[061010.EN.SEA] Maersk Dissents From TSA Plea To Retain Liner Consortia

RESISTANCE has mounted against a proposed ban on liner shipping "cartels" operating in the US trades, with Brian Conrad, executive administrator of the Transpacific Stabilisation Agreement (TSA) and Westbound Transpacific Stabilisation Agreement (WTSA), saying: "We don't believe a sweeping overhaul of US shipping law is necessary or advisable."
But Maersk Line CEO Eivind Kolding dissented, saying: "It is reasonable to expect that antitrust immunity in the US will go. Shipping lines would be happy to see a solution like the one we have in Europe."

Lloyd's List reported that Mr Kolding said he believes the antitrust immunity enjoyed by shipping lines works well, but that it strains customer relationships. He also said he would like to see an end to compulsory tariff filing by carriers with the US Federal Maritime Commission.


But the hands-on TSA chief, Mr Conrad, said: "At minimum, it's premature if done in response to an unprecedented, temporary set of market conditions that appear to be correcting themselves, and if done without giving remedies under existing law a chance to work."


American Shipper reported that Mr Conrad said eliminating carrier agreements, as done in the European Union, "will not address the temporary space and equipment shortages seen during the current global recession.

If anything, the individual confidential contracting process established by the 1998 Ocean Shipping Reform Act, if fully utilised, provides individual carriers and shippers with more than adequate tools to address these and any other issues.


"Vessel and container capacity has re-entered the transpacific trade; cargo is moving with few interruptions; and government has applied existing regulatory tools to promptly and comprehensively address shipper and carrier concerns.

It makes no sense to propose wholesale changes in the law before the dust has settled, the market has returned to normal business and seasonal cycles, and recent initiatives are given a proper chance to work," he said.


Source : HKSG, 06.10.10.