The Competition and Consumer Commission of Singapore (CCCS) is inviting public feedback regarding its recommendations to the Minister for Trade and Industry concerning the block exemption order (BEO) for liner shipping agreements. The CCCS has proposed renewing the BEO for another five years, extending its validity from January 1, 2025, to December 31, 2029.

The BEO currently exempts certain liner shipping agreements from being classified as anti-competitive under Section 34 of the Competition Act, provided specific conditions and obligations are met. These conditions include non-mandatory adherence to tariffs and the allowance for individual confidential contracts among member liner operators.

Initially established in 2006 based on CCCS recommendations, the BEO encompasses vessel sharing agreements and price discussion agreements for feeder services. These agreements are essential for the regular transportation of goods between ports and do not involve pricing discussions with customers.

The CCCS has indicated that vessel sharing agreements enhance Singapore’s position as a transshipment hub, promoting competition among liners and lowering entry barriers for smaller operators. This arrangement has additional environmental advantages, as larger vessels typically have a lower environmental impact.

The consultation is also exploring the potential effects of this extension on various maritime industry stakeholders, including main lines, feeders, port operators, freight forwarders, exporters, and importers. The commission is specifically interested in understanding how these agreements facilitate inland carriage of goods as part of through transport.

Feedback from the public consultation is open until June 17, after which the CCCS will finalize its recommendations based on the submissions received.