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The Loadstar and Splash reported earlier this week on another letter sent to the European Commission (EC), signed by ten shipper and forwarder organisations, outlining their concerns over the liner shipping market, raising the new complaint that carriers are abusing their dominant position to obtain commercially sensitive data.

According to the letter, the information liner shipping companies want relates to the location, volumes, timings and destination of freight moved by cargo owners, and could be deemed commercially sensitive data. The letter claims this information: “Is quite likely to be deemed stock market sensitive and hence will be subject to strict controls on disclosure to third parties. Noting that Article 3.4(a) of the Consortia BER (EC Regulation 906/2009) permits the use of computerised data exchange systems for implementation of agreements falling within its scope, there is currently an absence of controls on the use, disclosure, protection and storage of such data between operators within consortia.” CLECAT Director General Nicolette van der Jagt told The Loadstar smaller and medium-sized freight forwarders and shippers were particularly vulnerable to the carrier pressure to reveal sensitive information, as carriers withhold freight offers until this information is provided.

As a result of these and other concerns, the signatories have asked the EC to bring forward the review date for the Consortia Block Exemption Regulation (CBER) to this autumn rather than next spring when it is due. Reviews of the CBER take place in the two years prior to the end date of the current exemption. Normally, this would start after three years, however, the CBER was renewed early in the pandemic, in spring 2020, for a four-year period, rather than five. The CBER is therefore due to expire in the spring of 2024.

Ms van der Jagt said shippers and forwarders were extremely concerned about new developments, with the major carriers now making massive profits and acquiring smaller players along the supply chain. She believes this could give carriers even greater control over European supply chains.

Ms van der Jagt believes current prices, of more than $20,000/feu, are driving some companies to the wall. “It is frustrating that the EC blames the pandemic for the current state of the market,” she said. The article concludes with a quote from the letter: “While there are undoubtedly significant impacts of the pandemic, they occur in a container shipping market which is fundamentally flawed. Your accurate assessment that liner shipping has become a business ‘with little margin for adjustment’ speaks to this. In our view, an unwillingness by the commission to address the concerns about the functioning of the market would fail European consumers and contribute to a weakening of Europe’s competitiveness.”