The European Commission published a draft Regulation proposing to extend the EU Consortia Block Exemption Regulation until 25 April 2024, without modification. The regulation provides a “safe harbor” under European competition law for vessel sharing arrangements that have a market share up to 30%.  The World Shipping Council (WSC) commends the European Commission for continuing to recognize both the benefits of vessel sharing consortia and the importance of the consortia BER to the efficient operation of those operational arrangements.

“Vessel sharing arrangements are an established and essential part of the liner shipping networks that carry the international trade of the European Union and the rest of the world,” said WSC President and CEO John Butler.   He added: “Consortia allow carriers to provide their customers with better services at lower cost, with improved environmental performance.” 

In addition to the draft Regulation, the Commission also published a consultation road map, inviting comments on the road map by December 18, 2019, and on the proposed course of action set down in the draft Regulation by January 3, 2020.  Following this consultation, the EC may decide to directly adopt or refine its proposal. 

The World Shipping Council will work with the Commission as it continues its consultation process and will submit additional formal comments in the days ahead in accordance with the process outlined by the Commission. 

The liner shipping industry transports over 33 million TEU (twenty-foot equivalent unit) of imports to and exports from the European Union annually that are valued at more than $1.6 trillion and are estimated to contribute more than $65 billion each year to the economy of the European Union.