Tuesday, October 5, 2010

NITL signs up for liner reform

The US National Industrial Transportation League (NITL), which represents more than 600 shipper and transport firms, has said it is in favour of the “underlying reforms and purposes” of the Shipping Act of 2010.

The Bill was introduced to the US House of Representatives on 22 September by Congressmen James Oberstar and Elijah Cummings.

If passed into law, the Bill, which has been welcomed by shipper organisations around the world, would eliminate anti-trust immunity for ocean carriers serving the US, bringing an end to shipping lines engaging in joint negotiations on freight rates or surcharges through conferences.

The NITL said the current US shipping regulatory system did not work in the best interests of US businesses that were required to compete in the global market. “The bill seeks to address recent problems faced by importers and exporters in enforcing service contract obligations in a timely and cost effective manner,” said the NITL. NITL President Bruce Carlton added: “The bill recognises that increased competition, reliability and market-driven efficiencies are necessary for services provided by the liner carriers in the US-international trades.”

Congressman Oberstar argues that the new legislation will prevent liner carriers discussing or agreeing upon rates and charges, including guidelines that form the basis of pricing services for their customers. “Eliminating the anti-trust immunity for these [liner] conference agreements will increase competition by requiring ocean carriers to compete in the marketplace with the best price and service to get shippers’ business,” he said last month.

Source: IWF 5th Oct 2010

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