Carrier Alliances Worry Singapore’s Shippers

The Singapore National Shippers’ Council (SNSC) expressed growing concern over the ongoing trend pursued by major carriers on formation of shipping alliances.

Leading container carriers have continued to expand their capacity despite a challenging environment in the industry, according to the Council.

“Today, all major carriers in the east-west trades are in one of four aliances, a development unprecedented in the liner shipping industry.This is cause for concern for shippers as the liner industry is possibly the only industry which enjoys immunity from prosecution under antitrust laws for collective agreements,” SNSC Chairman John Y.Lu said at the annual general meeting on Monday.

Lu added that the Council would impress on the Competition Commission of Singapore the need for Singapore to drop the Block Exemption Order (BEO) from the Competition Act during the upcoming review of the order.

During the general meeting, SNSC elected a new Chairman, George Chew who replaced Lu after 18 years of service.