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Small shipping lines
servicing the Asia-Europe trade are expected to
face a losing battle against bigger players when
the abolishment of shipping line conferences by
the European Union (EU) takes effect on Oct 18.
A liner conference is a group of shipping lines
that have formed an alliance for the joint
setting of rates and service conditions for
transporting containerised exports and imports.
Under this new EU ruling, shipping companies
providing scheduled services to EU ports will no
longer be able to operate under price-fixing and
supply-regulating agreements.
Malaysian Shipowners Association (Masa) chairman
Nordin Mat Yusoff told StarBiz that small
shipping companies would have to fight the big
players with capacity reaching up to 10,000 TEUs
(20ft-equivalent units) per vessel come Oct 18.
“The big boys that enjoy better economies of
scale via their large capacity will be able to
offer lower freight rates than smaller liner
operators in one of the most important liner
trade lanes. The Asia-Europe container trade
volume is estimated 17 million TEUs per year.
“With the change in EU rules, there will be
serious consequences worldwide; and this will
affect the way shipping companies provide their
services to EU ports from Asia, including
Malaysia,” he said.
But, he added, there were also other instruments
such as service contracts to secure a more
stable relationship and freight rates between
carriers and shippers.
Nordin, also MISC Bhd vice-president (fleet
management), said the removal of the anti-trust
immunity could be a welcome development to
shippers who could now negotiate rates and
services directly with shipping lines which
would no longer be able to operate under a
conference or any organised grouping.
The matter would be discussed at the 5th Asia
Maritime and Logistics Conference and Exhibition
2008 organised by Masa.
To be held in Kuala Lumpur from June 24 to 26,
the international shipping event will provide a
platform to users and providers of shipping
services linking ports in the EU to discuss the
far-reaching impact of the removal by EU of the
anti-trust immunity on liner shipping.
“We have invited Dr Rawindaran Nair from Cardiff
University, who has carried out a study on the
impact of the removal of the anti-trust immunity
for the European Liner Association, to provide
an insight,” he said.
Nordin said that in addition to the discussion
on the liner trade, there would also be a
presentation on recent developments in shipping
regimes affecting bulk shipping.
Felda, which is one of the world’s largest
shippers of vegetable oils in bulk, will brief
participants on how it is coping with the
challenges brought about by changes in
regulations affecting bulk ships and bulk
shipping.
“There have been reports of a dearth in shipping
capacity for palm oil as a result of the phasing
out of the single-hull tankers, entry of new
International Maritime Organisation rules on the
carriage of vegetable oils and also the
diversion of tonnage to chemical oils trades,
all of which have an impact on the vegetable
oils trade,” he said. |
