The European Commission opted against renewing the Consortia Block Exemption Regulation (CBER), a lawful framework that granted liner shipping consortia immunity from EU antitrust regulations.
After conducting a comprehensive evaluation process that began in August 2022, the Commission determined that the CBER is no longer effective, and thus, its expiry on 25 April 2024 will be allowed to stand.
The CBER permits shipping lines, subject to specific terms, to engage in collaboration pacts, commonly referred to as 'consortia', to deliver combined shipment transport services. The determination to terminate the CBER arose following input provided by various stakeholders and from questionnaires given to significant players in the maritime container shipping supply chain. The surveys centred on the consequences of consortia between container shipping firms and the CBER on their operations.
When evaluating the CBER's performance, the Commission sustained frequent communication with market participants, regulatory and competition authorities across Europe, the US and other locations regarding the shipping industry's challenges. Additionally, questionnaires were sent to carriers to gauge the impact of COVID-19 on their operations and the maritime supply chain.
The collected evidence indicated the CBER's effectiveness and efficiency were limited from 2020 to 2023. Additionally, the CBER had stopped facilitating collaboration amongst small carriers and the provision of alternative services to compete with larger carriers.
The Commission's choice not to grant an extension of the CBER does not imply that cooperation between shipping lines will become illegal under EU antitrust regulations. Instead, carriers operating to or from the EU must evaluate whether their cooperation agreements conform to EU antitrust regulations based on the guidance supplied in the Horizontal Block Exemption Regulation and Specialisation Block Exemption Regulation.
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