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The Pros And Cons Of Ocean Shipping Conferences

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Many countries has given conferences the go ahead due to the good they are doing for the industry. As we saw in the previous section the European Union since 2008 has drawn a line in the sand and banned all conferences and cartels. The United States of America (USA) has since 1914 historically largely exempted shipping conferences from antitrust provisions. The Federal Maritime Commission (FMC) has had a certain discretionary power to investigate any abuses. As we have seen even with investigations the shipping conferences had certain monopoly powers that put customers and competitors at a disadvantage. The Ocean Shipping Reform Act (OSRA), which went into effect in 1999, has cut down on some of the monopoly power of shipping conferences in the USA.
The shipping industry has been battling overcapacity since the financial crisis in 2002 because new vessels previously ordered before the downturn have flooded the market. The result is …show more content…

Maersk has ordered 20 super-size vessels from South Korea’s Daewoo Shipbuilding & Marine Engineering. Four of them were put into service on the busy route between Asia and Europe during 2006, helping to lower costs per unit by around 6%.
The impact of conferences is much wider than one thinks.
Liner shipping is a vital part of international trade today, moving massive amounts of goods across the world from producers to consumers, in an advanced network which has gradually grown after the war years of the 1940’s. There are, however, both advantages and disadvantages in the growth of international trade.
(Source and more reading can be found at: www.reuters.com/article/2014/03/21/us-shipping-maersk; www.marinetraffic.com; www.ajot.com/news/update-4-alliance-of-top-three-shipping-lines-could-start-in-mid-2014-maersk)
The advantages include the following:
• Lowering of

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