29 Assns Urge Repeal of Antitrust Immunity for Foreign Owned Ocean Carriers
On January 12, 2011, 29 trade associations sent letters to the Chairmen and Ranking Members of the House Transportation and Infrastructure and Judiciary Committees regarding the repeal of antitrust immunity for foreign-owned ocean carriers, a matter they says deserves the Committees’ attention early in the 112th Congress.
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In their letter, the associations state that antitrust immunity allows foreign shipping companies to collectively fix freight rates, service terms, and vessel capacity offered to U.S. importers and exporters. The groups assert that in today’s global marketplace, there is no rationale for allowing such anticompetitive practices to continue.
The groups note that the problems faced by businesses in 2010 from the economic recession were “exacerbated by the ocean carriers who “rolled freight” and stranded cargoes in foreign and U.S. ports, breached their contracts with U.S. importers and exporters, and applied virtually uniform across-the-board rate increases and surcharges.” According to the groups, as long as ocean carrier antitrust immunity continues, U.S. importers and exporters are denied the benefits of a competitive market.
Antitrust Immunity Repeal Should be Addressed in 112th Congress
The groups state that the introduction of legislation in the 111th Congress began a much needed debate on what changes are necessary for bringing about competitive and efficient services for U.S. businesses dependent on global trade. A key component of that bill that must be addressed in the 112th Congress is the repeal of the antitrust privilege.
(On September 22, 2010, H.R. 6167, the Shipping Act of 2010, was introduced. H.R. 6167 would have, among other things, eliminated most antitrust immunity for ocean carrier agreements, required surcharges to accurately reflect increases in carrier costs, etc. See ITT’s Online Archives or 09/27/10 news, 10092719, for BP summary.)
(See ITT’s Online Archives or 02/03/11 news, 11020330, for BP summary of comments received by the FMC regarding its Notice of Inquiry on the EU’s repeal of antitrust immunity.)
Association letter available by emailing documents@brokerpower.com.