AADA Part X investigation

Following several complaints from importers, in October 2003 the ACCC initiated an investigation into the conduct of parties (cargo shipping lines) to a discussion agreement registered under Part X of the Trade Practices Act 1974 ('the Act'), known as the Competition and Consumer Act 2010 from 1 January 2011.

Members of the Asia-Australia Discussion Agreement (AADA), a registered discussion agreement under Part X of the Act, had previously announced increases in the base freight rate of more than 100 per cent in a period of three months and also announced the imposition of peak season surcharges.

The purpose of the investigation was to report to the Australian Government Minister for Transport and Regional Services on whether or not there were sufficient grounds for matters referred to in s. 10.45(a)(vii) of the Act to recommend deregistration of the AADA.

The ACCC made its report to the Minister in July 2004 which found that there were not sufficient grounds for the minister to direct that the registration of the AADA be cancelled.