By Gavin van Marle 28/09/2018 In a year and half, the deepsea alliance structure could find itself on the wrong side of European competition legislation.Yesterday, the European Commission reopened its investigation into the block exemption that currently applies to container shipping, and which allows them to operate alliances on trades that serve the EU.Brought into law in 2010 – following the EU’s decision to outlaw the old conference system that allowed shipping lines to jointly set freight rates – the maritime Consortia Block Exemption Regulation has enabled carriers jointly run services and manage capacity on those services; in effect, it paved the way for today’s deepsea alliance structure.It is due to expire on 25 April 2020, and the EC has called on carriers, shippers, forwarders, ports and so on to submit comments, “seeking to collect views from stakeholders to assist the commission’s assessment of the impact and relevance of the Consortia Block Exemption Regulation, and to provide evidence for determining whether it should be left to expire or prolonged, and if so, under which conditions”.The deadline for comment is 20 December this year, and I strongly suspect that, without some sustained lobbying on the part of shipping lines – which have clearly benefited from alliance membership – the EC will either have to repeal the exemption or change the laws under which the alliances operate.One of the key conditions of the continuing existence of the exemption is that no consortia should have more than a 30% market share – however, since the alliances reorganised last year into three groups, that limit, de facto, have been breached, given that virtually every independent, non-alliance service has disappeared from the trunk Asia-Europe trades.Certainly, the three alliances control over 90% of the volumes on the trade, which means possibly all three have broken that threshold.This suggests that either the threshold or the alliances have to change. And given that the 30% mark is a standard for competition lawmakers, and once it is breached markets become unfairly concentrated for consumers, the former option appears highly unlikely.[There is also the side issue of Brexit: are the UK’s volumes to be included in these calculations? They should be, given that it is currently part of the EU, but won’t be once the 2020 expiry date comes around].I’m not sure where this leaves the lines in the short term – although given the positive effect that alliance membership appears to have had on carriers’ costs structures, it does raise the amusingly baffling prospect of lines potentially trying to lose market share in order to stay in business.
2 dead, 10 missing after boat from Cuba capsizes near Key West May 29, 2021 Retired Immokalee teacher swims 12 miles around Key West while raising money for student’s tuition June 15, 2021 AdvertisementTags: Key Westpower outage KEY WEST, Fla. [AP] – A sailboat got stuck in transmission lines and caused a power outage throughout the lower half of the Florida Keys on Monday morning, officials said. About 30,000 customers had no power around 9:30 a.m., Keys Energy Services reported. Crews were still working to restore power at 1 p.m., the company said. A Marathon Fire Rescue crew was removing people from the sailboat around 10:30 a.m., according to the Monroe County Sheriff’s Office. It was unknown whether there were any injuries to those on the sailboat. Advertisement FGCU experiences large scale power outage on campus May 28, 2021 Advertisement AdvertisementRecommended ArticlesBrie Larson Reportedly Replacing Robert Downey Jr. As The Face Of The MCURead more81 commentsGal Gadot Reportedly Being Recast As Wonder Woman For The FlashRead more29 comments AdvertisementA similar incident involving a sailboat hitting transmission lines next to the Seven Mile Bridge happened in October 2018. That incident also knocking out power to about 30,000 homes, Associated Press reported. Cape Coral neighborhood hit by power outage that lasted hours May 6, 2021 RELATEDTOPICS AdvertisementDC Young Fly knocks out heckler (video) – Rolling OutRead more6 comments’Mortal Kombat’ Exceeded Expectations Says WarnerMedia ExecutiveRead more2 commentsDo You Remember Bob’s Big Boy?Read more1 commentsKISS Front Man Paul Stanley Reveals This Is The End Of KISS As A Touring Band, For RealRead more1 comments