Draft report into alleged breach of Part X section 10.41 by liner cargo shipping conference

The Australian Competition and Consumer Commission today issued a draft report into an alleged breach of Part X section 10.41 of the Trade Practices Act 1974 by the Australia to Europe Liner Association.

The report sets out the ACCC's draft view that grounds exist for the Minister for Transport and Regional Services to be satisfied that AELA contravened section 10.41 in negotiations with the Australian Peak Shippers Association on outward terminal handling charges.

Among other things, section 10.41 of Part X of the Act requires liner cargo shipping conferences to provide peak shipper bodies with "reasonably necessary" information, upon request, for the purposes of negotiation.

On 11 August 2005, APSA lodged a complaint with the ACCC alleging that AELA had breached section 10.41 by refusing its request to sight contracts between AELA and AELA's provider of stevedoring services, P&O Ports, during negotiations on a proposed increase in OTHCs.

On the basis of preliminary inquiries the ACCC decided to hold an investigation into the matter. Under Part X of the Act, the ACCC is required to report to the Minister on its investigation.

Interested parties are invited to comment on the draft report by Friday 10 February 2006. The ACCC will consider any comments it receives in the preparation of its final report to the Minister. The draft report is available on the ACCC's website. (see links below)