'Extend exemption for shipping pacts'

The Competition Commission of Singapore (CCS) is recommending that the Government extend for another five years a block exemption for liner shipping agreements .

The move follows a public consultation held earlier this year.

The Competition (Block Exemption for Liner Shipping Agreements) Order, issued in 2006, exempts a category of liner shipping agreements from prohibitions against anti-competitive agreements. It was extended in 2010 for five years until the end of this year.

The CCS said yesterday it received five submissions in response to the public consultation, four of which were supportive and one against the proposed extension.

It said: "In arriving at its recommendation, CCS has carefully considered the changes in the international regulatory environment in its review and noted that anti-trust

exemptions for liner shipping agreements generally remain the regulatory norm worldwide.

"Agreements between liners to share vessel space increase the utilisation of space, enable more frequent services and may enhance competition with larger liners."

If the new extension is granted, it will last until December 2020.

Marissa Lee

A version of this article appeared in the print edition of The Straits Times on November 26, 2015, with the headline ''Extend exemption for shipping pacts''. Print Edition | Subscribe