Hong Kong: Regulator wants five-year block exemption for liner shipping

The Hong Kong Competition Commission has proposed a five-year block exemption for the liner shipping industry, but has rejected industry submissions that voluntary discussion agreements should be included in the exemption order.

A public consultation has been launched by the commission to gather the response of parties involved in container shipping to the block exemption that will be reviewed four years after its commencement date.

The commission said the proposed exemption order regarding vessel-sharing agreements, or VSAs, were subject to the parties not collectively exceeding a market share threshold of 40 percent, the VSA not authorizing or requiring shipping lines to engage in cartel conduct, and that shipping lines must be free to withdraw from the VSA without incurring a penalty on giving reasonable notice.

But in a move that took the industry by surprise, the commission said it had “formed the preliminary view” that voluntary discussion agreements, or VDAs, did not fall within the scope of the exclusion for agreements that enhanced overall economic efficiency.

Full Content: JOC

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