Naslov
Functioning of the Consortia Block Exemption Regulation under the current circumstances in the liner shipping services market – is there a justification for its further prolongation?

Autori
Bulum, Božena ; Pijaca, Marija

Vrsta, podvrsta i kategorija rada
Radovi u zbornicima skupova, cjeloviti rad (in extenso), znanstveni

Izvornik
Book of Proceedings of the 4th International Scientific Conference on Maritime Law / Amižić Jelovčić, Petra ; Brnabić, Ratko ; Skorupan Wolff, Vesna ; Padovan, Adriana V. ; Grbec, Mitja ; Musi, Massimiliano - Split : Faculty of Law University of Split, Co-Publisher Croatian Academy of Sciences and Arts, 2023, 53-67

Skup
4th International Scientific Conference on Maritime Law

Mjesto i datum
Split, Hrvatska, 13.04.2023. - 15.04.2023

Vrsta sudjelovanja
Predavanje

Vrsta recenzije
Međunarodna recenzija

Ključne riječi
Consortia ; Alliances ; Liner Shipping Services ; Consortia Block Exemption Regulation ; Competition Law ; Market Concentration

Sažetak
Liner shipping is an activity of strategic importance for every country because it enables exports and imports. For that reason, in many countries the liner shipping sector has a special status compared to other sectors as it is exempted from the application of some provisions of the general competition law. The paper analyses the European Union's legal framework regulating vessel-sharing agreements between liner shipping companies known as consortia and alliances. In the European Union, Article 101(1) Treaty on the Functioning of the European Union prohibits agreements between undertakings that might restrict competition. The main characteristics of a consortium agreement are the sharing of space and the determination of port calls and schedules between the parties of the agreement. Consortia generate rationalisation, economies of scale, and significant savings for the benefit of carriers. It was considered for many years, that a fair share of these benefits was passed on to users of the shipping services. For that reason, and given the efficiencies that consortia liner shipping agreements generate regarding the provision of international maritime transport of cargo, on the EU level Consortia Block Exemption Regulation has been in force since 1995. It provides guidance with respect to the compatibility of the consortia agreements with European Union competition rules. The European Commission has extended the Consortia Block Exemption Regulation every five years. The currently applicable Consortia Block Exemption Regulation will expire in April 2024, unless the Commission further prolongs it. The Commission is assessing how the Consortia Block Exemption Regulation has been functioning since it was last prolonged in 2020. In this paper, the recent challenges in the shipping industry, such as the use of ultra-large container vessels, the functioning of consortia during the COVID-19 pandemic, the market power of consortia and alliances, digitalisation, vertical integration, increase in prices of shipping services and issues of availability and reliability of liner shipping service are analysed. Finally, arguments, pro et contra further extension of the Consortia Block Exemption Regulation will be discussed.

Izvorni jezik
Engleski

Znanstvena područja
Pravo

POVEZANOST RADA