The Competition Commission of India (CCI) has urged the Ministry of Shipping (MoS) to prevent shipping conferences from deciding freight rates. The CCI wants the shipping companies to decided the rates themselves.
It has also asked the Ministry to advise the shipping companies against indulging in "non-competitive practices".
The CCI is of the opinion that shipping companies "are forming cartels in the form of conferences to decide freight rates".
Competition laws, as in most other countries, do not cover the shipping industry at present. The European Union plans to end exemptions to shipping companies from competition laws from 2008.
Shipping conferences are referred to as cartels, since they hold closed-door meetings of shipping companies working on the same routes.
If the Shipping Ministry lends a sympathetic ear to the CCI’s plea, it may take measures to lower shipping freight rates.
Source : Exim News Service