[060610.EN.SEA] US Investigate Possible Price-Fixing By Container Shippibng Lines

According to a Wall Street Journal report, the US Federal Maritime Commission (FMC) and the EU's competition watchdog are monitoring the world's top container shipping lines for any evidence of price fixing. Sharon Gill reports ...

The investigations follow reports received by the FMC that importers and exporters have had difficulty obtaining vessel space, particularly in the US-Asia trades, and that US exporters have experienced problems with the distribution and availability of shipping containers on those same Asian trades.

While the global financial crisis resulted in US liner exports dropping by 14% and imports by 16% percent, with carriers laying up more than 500 vessels worldwide (roughly 10% of the global fleet capacity), many ships remain idle despite improving economic activity and increasing cargo volumes.

The FMC has now ordered an investigation into shipping rates.

Specifically, the Fact-Finding Officer will report on:

Recent conditions in the US export liner trades

Recent conditions in the US import liner trades

Current and forecast common practices by vessel-operating common carriers (VOCCs) regarding the management and allocation of VOCC-, shipper-, and leasing company-owned equipment for the US import and export trades, specifically the management, supply, allocation and availability of containers for all US export commodities and categories

Current practices and plans of VOCCs regarding the deployment of vessel capacity in the US trades

Current and planned common practices relating to service contracting in the US liner trades, specifically: the practices of VOCCs with respect to the booking of cargo before and after a minimum quantity commitment of a service contract has been met but before the term of that contract has expired; the practices of VOCCs with respect to the cancellation of cargo bookings; the practices of carriers and shippers with respect to the overbooking of cargo; the impact of those practices on the availability of liner service to meet the demands of U.S. exporters and importers; and any related conditions or practices that affect the U.S. liner trades.

The Fact Finding Officer is to submit an interim report by June 15th and a final report by July 31st.

Source : EFT, 02.06.10.