Shipping lines face fines over pricing accord

Date: 06/04/2000

By Renée Cordes

THE European Commission looks set to impose hefty fines on some of the world's biggest shipping lines for a controversial pricing agreement which was dissolved nearly six years ago.

The accord dates back to 1991, when some 18 conference and non-conference (independent) carriers in Europe and Asia banded together to establish common rules to govern non-shipping-related surcharges.

The Far East Trade Tariff Charges and Surcharges Agreement was not formally notified to the EU executive at the time since the parties to the accord did not think it necessary. But the European Shippers Council complained to the Commission, arguing that the collaboration between conference and non-conference lines contravened Union competition rules.

The group disbanded after the Commission told the lines in 1992 they should have notified the pact. Two years later, the Commission issued a statement of objections to the agreement.

The EU executive then said nothing about the case until last week, when

an official warned that restrictive agreements between conference and non-conference lines were "a particular cause for concern".

Sources have also told member state experts that the Commission plans to impose fines, with a decision expected in the next couple of weeks.

The European Commission looks set to impose hefty fines on some of the world's biggest shipping lines for a controversial pricing agreement which was dissolved in 1994.