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Welcoming the European Commission (EC)'s decision not to extend the validity of the Consortia Block Exemption Regulation (CBER), which is due to end in April 2024, the International Federation of Freight Forwarders Associations (FIATA) has issued a statement claiming that fair competition will be promoted in the future.
Established in 2009, the CBER allowed liner shipping operators with a combined market share of less than 30% to cooperate and provide joint transport services. It is to create efficiencies which were intended to benefit other supply chain stakeholders and consumers. However, freight forwarders have not benefitted from anticipated service efficiencies. Consumers have not received significant cost savings, either. Concerns have been raised, as such, regarding the heightened risk of unfair market conditions under the CBER, which FIATA has stated was no longer fit-for-purpose in the evolved situation of market concentration and vertical integration.
FIATA acknowledges that the expiry of the CBER does not mean that consortia will be prohibited in the EU. It appreciates that any possible consortia in the future will be subject to strengthened supervision based on the EU antitrust rules that apply to all other economic sectors. It will enable the EC to take into account the new normal in the market, accounting for the vertical integration of certain carriers and heterogeneity in the size of other stakeholders and carriers. FIATA has indicated it will continue to seek a collaborative approach promoting dialogue between supply chain stakeholders to build the much-needed trust to achieve an equitable and efficient supply chain.
