CCCS seeks public feedback on renewing shipping exemption order

The CCCS wants the Trade Ministry to extend the order by five years.

The Competition and Consumer Commission of Singapore (CCCS) is seeking public feedback on its proposed recommendation to the Deputy Prime Minister and Minister for Trade and Industry to renew the Competition (Block Exemption for Liner Shipping Agreements) Order (LSA BEO) for five years from 1 January 2025 to 31 December 2029.

CCCS said the renewal will generate net economic benefit (NEB) for Singapore. The LSA BEO applies to Liner Shipping Agreements (LSAs), including vessel sharing agreements (VSAs) for liner shipping services and price discussion agreements (PDAs) for feeder services.

Section 34 of the Competition Act prohibits agreements, decisions and concerted practices that have the object or effect of preventing, restricting or distorting competition in Singapore. However, the Minister for Trade and Industry can make a block exemption order to exempt certain categories of agreements from section 34.

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The current LSA BEO exempts certain types of LSAs from section 34, subject to certain conditions and obligations. It will expire on 31 December 2024.

CCCS is seeking feedback on the possible impact of its proposed recommendation on the Singapore economy, and in particular on players in the maritime industry such as main lines, feeders, port operators, freight forwarders, as well as exporters and importers. 
In addition, CCCS is seeking feedback on the current and impending usage of LSAs which involve inland carriage of goods (e.g., truck or rail haulage) occurring as part of through transport.

The public can provide feedback on the proposed recommendation until 17 June.