TOC Europe: Ending the alliances would see freight rates “skyrocket”

Shipper opposition to the operation of deep sea liner shipping alliances may be dangerously misplaced, delegates at the TOC Europe heard last week

Lars Jensen, chief executive and partner of SeaIntelligence Consulting, said that efforts by some to bar container lines from operating in alliances, claiming that they have become anti-competitive – such as the International Transport Forum’s report earlier this year – would result in freight rates “skyrocketing”.

The EU’s Block Exemption Regulation (BER), which is the de facto legislation covering liner alliances and vessel sharing agreements (VSAs) on container trades to and from Europe, is set to expire on April 25, 2020, and European Commission regulators are currently assessing whether to extend it for a further five years.