Asia/Pacific News
MTI Extends Singapore BEO for Liner Shipping Agreements Another Five Years
Singapore's Ministry of Trade and Industry (MTI) Wednesday announced that it has extended the Competition Block Exemption for Liner Shipping Agreements Order (BEO) for five years through to December 31, 2020.
The BEO exempts liner shipping agreements from anti-competitive agreements prohibition under section 34 of Singapore's Competition Act, so long as certain conditions and obligations are met.
The extension is reported to come after a consultation process that began in May in which the Competition Commission of Singapore (CCS) requested input to explore possible impacts of the proposal on the Singapore economy - specifically in consideration of maritime industry stakeholders, including liners, shippers, port operators, and logistics service providers.
During the consultation process, Singapore National Shippers’ Council (SNSC), spurred on by concerns of negative impacts on shippers from the formation of major carrier alliances, is reported to have expressed intent to request that CCS remove the BEO from the Competition Act.
Transhipment is said to represent a considerable proportion of Singapore container volumes, with CCS asserting that Singapore's high availability of liner shipping services benefits importers and exporters in the city state more than if port depended solely on exports and imports.
In June, Ship & Bunker reported that Singapore had opened the newest addition to its container port with the aim of handling more mega-ships.
