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04 July 2025 - Year XXIX
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CENTRO INTERNAZIONALE STUDI CONTAINERSANNO XXXVIII - Numero MARZO 2020

MARITIME TRANSPORT

COMMENTARY: "WALKING THE TIGHTROPE OF ANTITRUST IMMUNITY"

"Even the United States offers limited antitrust immunity to international containership lines by allowing discussion agreements among the carriers. These are filed with the Federal Maritime Commission (FMC)."
There is nothing quite like it in the world. The type of antitrust immunity granted to international containership lines is certainly not covered in business schools except in those savvy enough to offer courses in transportation operations and management. The European Commission (EC), through its Director General of Competition, proposed allowing consortia of containership lines to retain their exemption from European Union (EU) competition law. While this has been in place since 2009, the exemption was set to expire in April 2020. The proposal is for a four-year renewal. In this setting, containership lines may form consortia (i.e., strategic alliances or discussion agreements) without fear of running up against charges of antitrust activity leading to excessive market control.

The EC's assessment of current market conditions led it to recommend a block exemption regulation (BER). The 2009 BER was granted just one year after the EU removed the BER on the more overt form of antitrust activity known as liner "conferences." This form of joint rate-making (i.e., price-fixing) had been the norm since 1875 and was built into the culture of the industry.

A BER on the supply side of the ocean carrier market is not regarded well by most shippers on the demand side. The World Shipping Council (WSC), which represents the carrier side, is pleased with the EC's judgement while other shipper councils representing consignors and consignees are not. In fact, the WSC's 19 carrier membership represents about 90% of international carrier capacity. Other entities that deal with carriers may not be pleased either. These include freight forwarders, ports and terminal operators. At this stage of the debate, the demand side is simply hoping for some amendments to the BER since outright abolition is not the EC's position. One suggestion from the European Shippers Council is to change the BER from a 30% threshold of trade lane activity to 25% in order to trigger an investigation by the EC into market dominance. Of course, the threshold had been reduced from 35% to 30% when the switch from conference to consortia BERs took place over 2008-2009.

Even the United States offers limited antitrust immunity to international containership lines by allowing discussion agreements among the carriers. These are filed with the Federal Maritime Commission (FMC). Business students might be surprised to hear that it is U.S. policy to grant such a degree of market protection to an industry that is mostly foreign-owned. Even as the industry moved away from U.S.-flagged vessels to flags of convenience (e.g., those granted by Liberia, Panama, etc.) the protection remained. Such is the prominence and necessity of international container shipping to the U.S. economy.

Yet in 2017 a meeting of the industry's top CEOs in Sausalito, California was raided by antitrust officials wielding subpoenas for information. This nearly two-year investigation was ultimately closed by the U.S. Department of Justice (DOJ) in February 2019 with no charges filed. There was nothing clandestine about the meeting. It was one of the biannual meetings of the International Council of Containership Operators (affectionately known to some as the "Box Club"). Several of its CEOs are members of the WSC as well. U.S. antitrust officials do indeed sit in on these meetings to make sure that the discussions do not veer into overt price-fixing. The group can discuss pricing guidelines (i.e., methods) but not actual prices. These guidelines are also taken by the membership to be voluntary when they set their individual freight rates. Anything more than that would be akin to cartel-like behavior.

Nonetheless, the demand side of the market sometimes raises its suspicions. In other words, when do guidelines become price signals among the CEOs? It certainly is interesting that DOJ felt it necessary to open a formal investigation into an organization it immunized. It was likely in response to recent consolidations among the world's largest container lines. Of course, the FMC approved all of these alliances in the first place and is aware of the inter-carrier discussion agreements. Thus, the regulators have quite the balancing act to perform.

This limited antitrust immunity was codified in the Ocean Shipping Reform Act of 1998 (OSRA), which prohibited carrier conferences along U.S. trade lanes. What did the carriers receive in return for this loss in market power? A lifting of the prohibition on negotiating confidential service contracts with preferred shippers. Naturally, big shippers like Walmart and Target were more than happy to leverage their ability to fill capacity on trans-Pacific routes from China as international supply chains went into high gear. The power of conferences was greatly diminished anyway due to this hybrid of carrier cooperation and competition.

"the current model of limited antitrust immunity may be the only way to stabilize an inherently unstable mode of international transportation"
The FMC is the regulatory interpreter of OSRA. It is also important to note that this limited protection applies only to foreign-flagged carriers. Jones Act carriers (i.e., those performing domestic transport) do not enjoy the protections codified in OSRA. In either case price-fixing is illegal and DOJ has successfully prosecuted cases involving international and domestic trade lanes.

A recent case involved Wallenius Wilhemsen Logistics (WWL), "K" Line Japan, NYK Japan and CSAV. Each paid fines in 2016 for price-fixing along trade lanes leading to the Port of Baltimore. In this case it involved roll-on, roll-off shipments of automobiles and trucks. WWL's fine after pleading guilty was $98.9 million. A case in a Jones Act trade lane involved Horizon Lines, Sea Star Line and Crowley Maritime paying fines in 2012 related to price-fixing along the U.S.-Puerto Rico trade lane. Horizon Lines pled guilty and agreed to pay a $45 million fine (though it was reduced to $15 million). The complainants in this case were The Kellogg Company and Kraft Foods.

Both sides of the ocean carrier market have one thing in common - each wants certainty. Of course, each side differs on what ought to be certain. The carriers will claim that they are only discussing availability and sharing of capacity (i.e., operational issues). One can argue that this leads to efficiencies through cost control which can be passed along to the customers.

The demand side counters that covert price-fixing (rather than innocent sounding pricing guidelines) serves to keep freight rates higher and not lower. Also, as some claim, carrier operations can involve an alliance speaking as one group when negotiating contracts with tugboats, port operators, etc. A more mercantilist argument may also suggest that foreign-based carriers, to the extent they do try to lower rates, do so only for the purpose of squeezing out non-members in a given trade lane. So, the argument would go, the alliances would be good for customers only in the short run.

The EC and the FMC regulate an industry with a past legal practice of price-fixing. More of the carriers are foreign and they are further consolidating. Just three alliances control 80% of the world's container vessel capacity. Their dominance is centered in Europe-Asia and Europe-U.S. trade lanes.

The 2M Alliance is made up of four lines of which Maersk and MSC are the world's two largest. The Ocean Alliance's six members include OOCL and CMA-CGM, the world's third and fourth-largest. Finally, THE Alliance's six members includes Hapag-Lloyd, the world's fifth largest.

Despite this the industry is characterized by over-capacity. Also, an increase in Triple-E class vessels promises to exacerbate this problem in the years to come. These large vessels of more than 18,000 TEUs provide economies of scale and lower costs per TEU. But the supply chain effects are not always positive. Since liners need fewer vessels when switching over to the largest ones, this means that it takes longer to load and unload them at those ports able to handle them. Thus, from the perspective of the demand side of the market, response time and flexibility are diminished. Only the mega-consignors are able to easily adjust to mega-vessels.

Take an industry with huge capital costs, long lead times in acquiring vessel capacity and couple that with the uncertainty of global market conditions over that long time period. In this context it probably never seems like a good time to invest in fleet size. But periodic investment must take place and it is always a risk-taking exercise. Unless the EU and the U.S. have the stomach for regulating international containership lines like public utilities, the current model of limited antitrust immunity may be the only way to stabilize an inherently unstable mode of international transportation. It is quite the regulatory balancing act.

www.freightwaves.com



P&O Maritime Logistics (DP World Group) to acquire 51% of NovaAlgoma Cement Carriers
Lugano
Nova Marine Holding and Algoma Central Corporation will retain 49%
Stable freight traffic in the ports of Genoa and Savona-Vado Ligure in May
Genoa
A decrease of -2.4% was recorded in the Ligurian capital's airport; a rise of +7.2% was recorded in the Savona airport
Consilium Safety Group Expands Presence in Türkiye and Maritime Market
Gothenburg
Ares Marine acquired
The first InnoWay freight railcars have left the Bagnoli della Rosandra plant
Fincantieri has opened a new Innovation Antenna in South Korea
Seoul
It is located in the heart of Seoul's technology district.
The commissioners of various AdSPs also assume the powers attributed to the Management Committees
Rome
Provisions for the port authorities of the Ionian Sea, the Central-Northern Adriatic Sea, the Eastern Ligurian Sea and the Northern Tyrrhenian Sea
Ferrara-based INCICO acquires Italiana Sistemi and focuses on transport engineering
Ferrara/Naples
It specializes in infrastructure and plant engineering in the railway and road sectors
Hupac announces expansion of Duisburg-Singen shuttle with connections to Italy
Noise
Daily departures will be made
The transfer of 80% of Louis-Dreyfus Armateurs' capital to InfraVia has been implemented
Suresnes/Paris
The Louis-Dreyfus family retains the remaining 20%
Port of Genoa, green light for extension of concession to Spinelli until September 30
Genoa
Ok also to the extension to the Campostano group
The National Maritime Fund has started the recognition of scholarships
Genoa
They are granted for basic training and security familiarization courses.
RFI and MIT sign the update to the program contract for approximately 2.1 billion
Rome
Around 500 million euros expected for the management of the railway network
San Giorgio del Porto delivers a vessel for the bunkering of liquefied natural gas
Genoa
It was built for Genova Trasporti Marittimi
Pisano (AdSP Liguria Orientale): the ports of La Spezia and Carrara have integrated almost perfectly
La Spezia/Bari
Extraordinary Commissioner of the Southern Adriatic Sea Port Authority appointed
Raffaele Latrofa appointed president of the AdSP of the Central-Northern Tyrrhenian Sea
Rome
He is the deputy mayor of Pisa
India's Mazagon Dock Shipbuilders Acquires Control of Sri Lanka's Colombo Dockyard
Mumbai
Investment of approximately 53 million dollars
The Commissioner of the Western Ligurian Sea Port Authority has been granted the powers and prerogatives of the Management Committee
Genoa
The measure pending the restoration of the ordinary top management bodies
The Three-Year Operational Plan 2025-2027 of the Central Adriatic Port Authority has been approved
Ancona
Favorable opinion of the Sea Resource Partnership Body
The public meeting of the International Containers Studies Center will be held in Genoa on July 2nd
Genoa
It will deal with the physical transformations of the container and the digitalization of processes
Andrea Ormesani is the new president of Assosped Venezia
Venice
The board of directors has been renewed. Paolo Salvaro remains general secretary
Witte (ISU): In 2024, the ship salvage sector stabilized from the low of two years ago
London
Finnish Elomatic to Install Tunnel Thrusters on 11 Carnival Cruise Ships
Turku
The works will begin next autumn and will end in 2028
The Assarmatori assembly will be held in Rome on July 1st
Rome
"Mediterranean against the current" the theme of the meeting
Fincantieri has delivered the new cruise ship Viking Vesta to the American Viking
Trieste/Los Angeles
It was built in the Ancona shipyard
The Genoa Coast Guard has placed the container ship PL Germany under administrative detention
Genoa
Italian Navy orders two new Multipurpose Combat Ships from Fincantieri
Trieste
The order to the shipbuilding company is worth 700 million euros
MSC Group to manage cruise services in the ports of Bari and Brindisi
Bari
Ten-year concession with possibility of extension
German Kombiverkehr Returns to Profit in 2024
Frankfurt am Main
The level of revenues remained unchanged at 434.6 million euros.
Deltamarin to design the six new ro-pax vessels ordered by Grimaldi for the Mediterranean routes
Turku
SAILING LIST
Visual Sailing List
Departure ports
Arrival ports by:
- alphabetical order
- country
- geographical areas
The practice of subcontracting in European logistics is creating a parallel labour market where rights are not enforced
Brussels
"Sorry, We Subcontracted You" Report Presented
Tomorrow Grendi will launch the group's fourth ship on routes to and from Sardinia
Milan
"Grendi Star", with a load capacity of 2,800 linear meters, will connect Marina di Carrara and Cagliari
FREMM frigates operational support contract signed between Orizzonte Sistemi Navali and OCCAR
Taranto
The agreement has a total value of approximately 764 million euros
Call to reform the entire driver training system in the transport sector
Rome
Seven proposals presented
In the port of Gioia Tauro, the Guardia di Finanza soldiers seized 228 kilos of cocaine
Reggio Calabria
Two dockers arrested
Port of Livorno, new observatory to find solutions to the problem of port congestion
Leghorn
Marilli: We will seek solutions to reach the possible revocation of the port fee
Lockton PL Ferrari closed the last fiscal year with gross revenues of 34 million dollars
Genoa
Insurance premium volume rose to 350 million
Polish Trans Polonia Group acquires Dutch Nijman/Zeetank Holding
Tczew
It specializes in the transportation and logistics of liquid and gaseous products
d'Amico Tankers Sells Two 2011-Built Tankers for $36.2 Million
Luxembourg
They will be delivered to buyers by the end of July and on December 21st.
The Italian Merchant Marine Academy plans 13 new free courses
Genoa
Over 300 positions available
A delegation of Wista Italy visits the ports of Catania and Augusta
Catania/August
The association is made up of women who hold positions of responsibility in the maritime, logistics and trade sectors.
In the first five months of 2025, the port of Algeciras handled 1.9 million containers (-6.3%)
Algeciras
Empty containers decreased by -5.5% and full ones by -6.4%
Reway Group enters the port railway infrastructure maintenance sector
Licciana Nardi
Two contracts awarded by the AdSP of the Eastern Ligurian Sea
Delcomar and Ensamar take over maritime services with the smaller Sardinian islands
Cagliari
The tender for the six-year concession of the connections has been awarded
Port of Trieste, the newly appointed Gurrieri torpedoes the newly appointed Torbianelli
Trieste
Russo (Pd): it's a squalid power game
Singapore's SeaLead expands its maritime shipping offering to connect Turkey and Italy
Singapore
Route connected to services transiting the Suez Canal
The US Container Security Initiative program has been extended to Morocco
Rabat
Amrani: Let's consolidate Tanger Med's role as a safe and world-class maritime hub
Very positive first quarter for Greek Euroseas
Athens
Pittas: the positive momentum continued in the second quarter
Assonat and SACE present a plan for Italian tourist ports
Rome
Kuehne+Nagel has opened a new branch in Naples
Milan
The aim is to support the operational growth of the group in Southern Italy
RINA has acquired the entire capital of Finnish Foreship
Helsinki
The Helsinki-based company specializes in consulting in the field of marine and mechanical engineering.
Container traffic down at Barcelona and Valencia ports in May
Barcelona/Valencia
Resumption of containers in transit at the Catalan port
Annual cargo traffic in Greek ports stable in 2024
Piraeus
Domestic volumes are growing, while foreign trade is decreasing
Perplexity of freight forwarders, customs agents and maritime agents of La Spezia at the transfer of the port of Carrara to the Tuscan AdSP
The Spice
Timidly, they "hope for consideration for the progress made so far"
Francesco Mastro appointed extraordinary commissioner of the Southern Adriatic Sea Port Authority
Rome
He will take up office on June 30th.
John Denholm to be new president of the International Chamber of Shipping
Athens
He will take over from Emanuele Grimaldi in a year
Extraordinary commissioners of the two Ligurian Port System Authorities have been installed
Genoa/La Spezia
Matteo Paroli and Bruno Pisano at the helm of the institutions
Container traffic at Hong Kong port drops sharply in May
Hong Kong
1.05 million TEUs were handled (-12.7%)
Assogasliquidi-Federchimica shows the way to accelerate the decarbonization of road and maritime transport
Rome
Amadei: Our sector is ready and the time has come for courageous industrial choices
Eagle S tanker command blamed for cutting submarine cables in Gulf of Finland
Advantages
The accident was caused by the ship's anchor
Online platform to report critical issues that put transport workers at risk
Genoa
It was prepared by Fit Cisl Liguria
GNV to create a direct summer connection between Civitavecchia and Tunis
Genoa
It will run alongside the historic route via Palermo
The unification of Grimaldi's concessions in the port of Barcelona has been completed
Madrid/Barcelona
The contract expires on September 20, 2035.
In the first five months of 2025, cargo traffic in Russian ports fell by -4.9%
St. Petersburg
A decrease of approximately -12% was recorded in May
Raben Logistics Group Creates Subsidiary in Türkiye
Milan
It will have 20 employees and a 2,000 square meter cross-dock warehouse
Alberto Dellepiane confirmed as president of Assorimorchiatori
Rome
The composition of the entire association leadership remains unchanged
Agreement between Fincantieri and Indonesian PMM to develop solutions to face new unconventional underwater challenges
PORTS
Italian Ports:
Ancona Genoa Ravenna
Augusta Gioia Tauro Salerno
Bari La Spezia Savona
Brindisi Leghorn Taranto
Cagliari Naples Trapani
Carrara Palermo Trieste
Civitavecchia Piombino Venice
Italian Interports: list World Ports: map
DATABASE
ShipownersShipbuilding and Shiprepairing Yards
ForwardersShip Suppliers
Shipping AgentsTruckers
MEETINGS
The Assarmatori assembly will be held in Rome on July 1st
Rome
"Mediterranean against the current" the theme of the meeting
The public meeting of the International Containers Studies Center will be held in Genoa on July 2nd
Genoa
››› Meetings File
PRESS REVIEW
US has its eye on Greek ports
(Kathimerini)
Proposed 30% increase for port tariffs to be in phases, says Loke
(Free Malaysia Today)
››› Press Review File
FORUM of Shipping
and Logistics
Intervento del presidente Tomaso Cognolato
Roma, 19 giugno 2025
››› File
Structural adaptation works on dock 23 of the port of Ancona awarded
Ancona
Intervention worth over 11.8 million euros
Conference on the role of LNG and bioLNG for the decarbonisation of transport and industry
Rome
The Federchimica-Assogasliquidi event will take place on Monday in Rome
Dutch Bolidt increases presence in cruise ship sector with acquisition of American Boteka
Hendrik Ido Ambacht
Contship Italia has acquired the Genoese customs services company STS
Melzo
The Ligurian company was founded in 1985
Francesco Benevolo has been appointed extraordinary commissioner of the AdSP of the Central-Northern Adriatic Sea
Rome
He is the operations director of RAM - Logistics, Infrastructure and Transport
Montaresi resigns as commissioner of the Eastern Ligurian Port Authority
The Spice
In the eight months of administration - he underlines - we have not lost even a second
Gurrieri has been appointed extraordinary commissioner of the AdSP of the Eastern Adriatic Sea
Trieste
Pending the completion of the formal process for the designation of the president
The commissioners of the AdSP of Western Liguria have handed over their mandate to Minister Salvini
Genoa
The decision is part of the process of designation and nomination of the new leaders
Confetra criticizes the provisions of the decree-law Infrastructure for road transport
Rome
The Confederation urges the blocking of the process of appointing the presidents of the port authorities
Taiwanese Evergreen, Yang Ming and WHL saw revenue decline in May
Keelung/Taipei
The decline is accentuated for the two main companies
South Korea's KSOE wins order to build eight 15,900 TEU containerships
Seongnam
The unit value of each vessel is approximately $221 million.
First port terminal for car traffic of Greek Neptune Lines
Piraeus
It will be inaugurated next year in the French port of Port-La Nouvelle
The assembly of the association of Genoese maritime agents and brokers will be held on June 16th
Genoa
Round Table on Genoa, the hub of the North West and the Mediterranean
BN di Navigazione Board of Directors Renewed
Genoa
BluNavy aims to reach one million passengers by 2025
Viking Line designs world's largest all-electric ro-pax vessel
Viking Line designs world's largest all-electric ro-pax vessel
Åland
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