Maritime competition as an economic phenomenon is currently influenced by a number of factors both at EU and international level. From a legislative point of view, the recent repeal of EC Reg. 4056/1986 affects the treatment of horizontal agreements not only in the liner but also in the bulk sector, which was excluded until recently from the scope of EC secondary competition rules. However, competition distortions are not only a question of private arrangements. They emanate also from measures and practices incompatible with the freedom to provide services, Member states’ protectionism and international mandatory regulation. This volume comparatively and comprehensively examines all these issues, by bringing together contributions from distinguished academics. Particular focus is given on private shipping cartels, the liberalization of cabotage and port services, indirect competition-distorting factors and the latest developments on international regulation of carriage of goods by sea.

Liner conferences are among the oldest surviving cartels in the world. Created in the 1870s they have existed since on all the world's shipping routes. With the approval or tacit acquiescence of governments everywhere, they fix freight rates, control capacity and share markets. The United Nations Code of Conduct for Liner Conferences (1974) granted them global recognition and prompted the European Community to recommend Member States to join the Convention on the Liner Code (1979) and to grant them the most generous and extraordinary block exemption from EC antitrust rules ever (1986). The European Commission's administration of the block exemption has clarified some of its aspects and, to a certain extent, limited its scope; but until very recently, it has not questioned the appropriateness of the exceptionally lenient treatment of liner shipping cartels in the European Union. After a report by the OECD Secretariat (2002) recommending abolition of antitrust immunity for shipping cartels in member countries, the European Commission launched a review of the block exemption (2003) which has led to its repeal (2006). This book studies first the origins, the early history and the regulation of liner conferences in the world and in the European Community, focusing in particular on the Regulation which granted a block exemption to liner conferences. Then, it examines one by one the four conditions for a block exemption to be granted under EC law, and concludes that none of them is fulfilled by shipping cartels. Finally, it proposes some alternative scenarios and solutions for the adequate enforcement of antitrust law in the maritime sector once the block exemption has been repealed.

This book explores the possible changes in the way that liner shipping takes place, in consequence of the removal of the EU Block Exemption Regulation on Liner Conferences. It is expected that some changes would have to be made, in particular concerning collusive practices that might no longer be exempted, and would therefore fall under the EU competition law rules as found in the Treaty. Since it is an International Maritime Law book, it also focuses on the interaction of EU Law principles with international maritime law and current maritime trading practices, and why non EU shipping companies may need to take note of any such new development in the EU if they trade in any way which affects the EU market, or trade on EU routes. The book tries to look ahead in this regard, since such a move is in line with the EU's practice of increasing the application of competition law to different markets across Europe.

In twenty years, the globalization of trade has led to a change in scale that has upset the balance of power between the players in online containerized maritime transport and the logistics chain passing through European seaports. Three global shipping alliances dominate 90% of online containerized maritime transport, while further integrating port activities. Twelve Asian ports, eight of which are Chinese, are now among the top fifteen in the world. At the same time, Chinese interests, supported by public authorities and resources, are taking control of terminals and port companies in Europe, as part of the geopolitical project of the New Silk Roads. This economic and industrial context is emblematic of the challenges facing European competition law, which has so far accompanied rather than controlled these transformations. European competition rules will have to be mobilized in a global context, alongside the new rules on the control of foreign direct investment. This study takes stock of the new regulatory challenges in this sector of prime importance for the Union.