natgillin/translations-raw huggingface dataset:
The European shipping industry and market constitute a sector which is constantly developing in a particularly globalised context.
The European shipping industry and market constitute a sector which is constantly developing in a particularly globalised context.
The explosion of international trade has generated spectacular profits and constant demand for the services of the major freight container carriers, while new forms of cooperation, company mergers and alliances are constantly changing market circumstances: this concerns the European Union, since 90% of external trade and 43% of internal trade is carried by sea.
The explosion of international trade has generated spectacular profits and constant demand for the services of the major freight container carriers, while new forms of cooperation, company mergers and alliances are constantly changing market circumstances: this concerns the European Union, since 90% of external trade and 43% of internal trade is carried by sea.
The European Union's transport strategy seeks to promote the effectiveness and competitiveness of this sector.
The European Union's transport strategy seeks to promote the effectiveness and competitiveness of this sector.
It is essential to bear these new circumstances in mind in revising the existing arrangements governing competition in maritime transport, so as to prevent any negative repercussions for the competitiveness on Europe's economy, in particular the European fleet and its ability to operate properly with commercial and entrepreneurial success.
It is essential to bear these new circumstances in mind in revising the existing arrangements governing competition in maritime transport, so as to prevent any negative repercussions for the competitiveness on Europe's economy, in particular the European fleet and its ability to operate properly with commercial and entrepreneurial success.
Such a revision must also take into account existing legal and operational arrangements in other regions (USA, Australia, Japan) since any rearrangement of Europe's carrying capacity may have a destabilising effect worldwide.
Such a revision must also take into account existing legal and operational arrangements in other regions (USA, Australia, Japan) since any rearrangement of Europe's carrying capacity may have a destabilising effect worldwide.
Brief outline
Brief outline
The shipping market and maritime transport in particular may be divided into two broad categories:
The shipping market and maritime transport in particular may be divided into two broad categories:
(a) the liner market i.e. scheduled services
(a) the liner market i.e. scheduled services
Since 1875 this category has been organised by the system of Liner Conferences with a view to ensuring stability of supply, demand and prices in this sector.
Since 1875 this category has been organised by the system of Liner Conferences with a view to ensuring stability of supply, demand and prices in this sector.
'Liner conference' means a group of two or more vessel-operating carriers which provides international liner services for the carriage of cargo on a particular route or routes within specified geographical limits and which has an agreement or arrangement, whatever its nature, within the framework of which they operate under uniform or common freight rates and any other agreed conditions with respect to the provision of liner services.
'Liner conference' means a group of two or more vessel-operating carriers which provides international liner services for the carriage of cargo on a particular route or routes within specified geographical limits and which has an agreement or arrangement, whatever its nature, within the framework of which they operate under uniform or common freight rates and any other agreed conditions with respect to the provision of liner services.
The demand by developing countries for greater involvement of their fleets in liner services led to the adoption by the United Nations Conference on Trade and Development (UNCTAD) in 1974 of the Code of Conduct for Liner Conferences.
The demand by developing countries for greater involvement of their fleets in liner services led to the adoption by the United Nations Conference on Trade and Development (UNCTAD) in 1974 of the Code of Conduct for Liner Conferences.
This Code came into effect in 1983 and is the chief legal basis governing regular international maritime liner services.
This Code came into effect in 1983 and is the chief legal basis governing regular international maritime liner services.
Since 1986 Council Regulation 4056/86 has provided for the exemption of 'conferences' from competition policy rules (Article 85 and 86 of the Treaty) subject to certain conditions, terms and obligations, such as the condition that an agreement shall not cause detriment to certain ports, transport users or carriers owing to the application of rates and conditions of carriage which differ according to the country of origin or destination or port of loading of discharge unless such rates or conditions can be justified.
Since 1986 Council Regulation 4056/86 has provided for the exemption of 'conferences' from competition policy rules (Article 85 and 86 of the Treaty) subject to certain conditions, terms and obligations, such as the condition that an agreement shall not cause detriment to certain ports, transport users or carriers owing to the application of rates and conditions of carriage which differ according to the country of origin or destination or port of loading of discharge unless such rates or conditions can be justified.
With Regulation 4056/86 the European Community has adopted the system of closed conferences, while at the same times allowing free trade, thereby ensuring that outsiders can continue to compete substantively.
With Regulation 4056/86 the European Community has adopted the system of closed conferences, while at the same times allowing free trade, thereby ensuring that outsiders can continue to compete substantively.
The exemption permits conferences to engage in various practices such as the coordination of shipping timetables, the allocation and frequency of sailings, the allocation of cargo or revenue among members, the regulation of carrying capacity, etc.; but it also allows them to fix freight charges and manage the supply of vessels, which constitutes a substantive departure from the rules of free competition.
The exemption permits conferences to engage in various practices such as the coordination of shipping timetables, the allocation and frequency of sailings, the allocation of cargo or revenue among members, the regulation of carrying capacity, etc.; but it also allows them to fix freight charges and manage the supply of vessels, which constitutes a substantive departure from the rules of free competition.
Today there are 150 international liner conferences, 28 of which have departure and arrival points in the European Union.
Today there are 150 international liner conferences, 28 of which have departure and arrival points in the European Union.
The Member States principally involved in scheduled liner services include Denmark, Germany, Italy, the Baltic countries and Cyprus.
The Member States principally involved in scheduled liner services include Denmark, Germany, Italy, the Baltic countries and Cyprus.
It is worth pointing out that, according to the latest available data (UNCTAD - 2003, Stopford - 2003), 60% of the overall value of international maritime trade was carried by scheduled services (liner conferences), while over 25% of the 5.9 billion tonnes transported by sea in 2002 was carried by these services.
It is worth pointing out that, according to the latest available data (UNCTAD - 2003, Stopford - 2003), 60% of the overall value of international maritime trade was carried by scheduled services (liner conferences), while over 25% of the 5.9 billion tonnes transported by sea in 2002 was carried by these services.
(b) the international tramp vessel services market, i.e. non-scheduled services
(b) the international tramp vessel services market, i.e. non-scheduled services
Tramp vessel services operate non- scheduled routes where the freight rates are freely negotiated in accordance with the conditions of supply and demand.
Tramp vessel services operate non- scheduled routes where the freight rates are freely negotiated in accordance with the conditions of supply and demand.
Other forms of cooperation
Other forms of cooperation
· Liner shipping companies (consortia) which provide liner shipping services (focusing on containers) but are not involved in the joint fixing of freight rates.
· Liner shipping companies (consortia) which provide liner shipping services (focusing on containers) but are not involved in the joint fixing of freight rates.
Regulation 4056/86 was supplemented by Commission Regulation 823/2000 which provides for block exemption for liner shipping consortia.
Regulation 4056/86 was supplemented by Commission Regulation 823/2000 which provides for block exemption for liner shipping consortia.
· Discussion agreements.
· Discussion agreements.
A discussion agreement is a sort of framework agreement by virtue of which carriers which are members of conferences and outsiders are able to coordinate flexibly their competitive conduct on the market in relation to freight rates and other service conditions.
A discussion agreement is a sort of framework agreement by virtue of which carriers which are members of conferences and outsiders are able to coordinate flexibly their competitive conduct on the market in relation to freight rates and other service conditions.
The scope and content of such agreements may vary.
The scope and content of such agreements may vary.
Discussion agreements concern normally the exchange of sensitive business information between competitors and should therefore respect the settled case law of the court on exchanges of information.
Discussion agreements concern normally the exchange of sensitive business information between competitors and should therefore respect the settled case law of the court on exchanges of information.
The Commission's proposal for a review of Regulation 4056/86 forms part of an overall European framework for the liberalisation of services, including transport, as the Lisbon European Council had demanded in 2000.
The Commission's proposal for a review of Regulation 4056/86 forms part of an overall European framework for the liberalisation of services, including transport, as the Lisbon European Council had demanded in 2000.
The review proposed by the Commission concerns:
The review proposed by the Commission concerns:
Liner conferences
Liner conferences
In reviewing liner conferences, the Commission considers whether, under present conditions, block exemptions provided for by Regulation 4056/86 continue to fulfil the four conditions laid down below, thereby justifying the continuation of the exemption from the general rules of competition:
In reviewing liner conferences, the Commission considers whether, under present conditions, block exemptions provided for by Regulation 4056/86 continue to fulfil the four conditions laid down below, thereby justifying the continuation of the exemption from the general rules of competition:
1. they must contribute to improving the production or distribution of goods or contribute to promoting technical or economic progress (efficiency);
1. they must contribute to improving the production or distribution of goods or contribute to promoting technical or economic progress (efficiency);
2. consumers must receive a fair share of the resulting benefits (pass-on);
2. consumers must receive a fair share of the resulting benefits (pass-on);
3. the restrictions must be indispensable to the attainment of these objectives (indispensability), and finally
3. the restrictions must be indispensable to the attainment of these objectives (indispensability), and finally
4. they must not afford the parties the possibility of eliminating competition in respect of a substantial part of the products in question (no elimination of competition).
4. they must not afford the parties the possibility of eliminating competition in respect of a substantial part of the products in question (no elimination of competition).
The Commission concludes that exemption is no longer justified since price stability may be achieved by other less restrictive forms of cooperation and the four cumulative conditions which justify it are no longer met.
The Commission concludes that exemption is no longer justified since price stability may be achieved by other less restrictive forms of cooperation and the four cumulative conditions which justify it are no longer met.
It thus considers whether the existing block exemption for liner services should be abolished and, after evaluating the proposals submitted by the sector and other interested parties, whether it should espouse an alternative framework for cooperation between liner services by adopting a suitable legal instrument.
It thus considers whether the existing block exemption for liner services should be abolished and, after evaluating the proposals submitted by the sector and other interested parties, whether it should espouse an alternative framework for cooperation between liner services by adopting a suitable legal instrument.
Cabotage and tramp vessel services
Cabotage and tramp vessel services
The Commission proposes to bring cabotage and tramp vessel service within the scope of Regulation 1/2003 (full competition).
The Commission proposes to bring cabotage and tramp vessel service within the scope of Regulation 1/2003 (full competition).
However, in order to help the tramp industry to correctly assess notably its 'pool agreements' and in order to facilitate individual assessment of cooperation agreements by carriers and group cooperation agreements (bulk pools), the Commission will consider issuing some form of guidance in a manner that is to be determined.
However, in order to help the tramp industry to correctly assess notably its 'pool agreements' and in order to facilitate individual assessment of cooperation agreements by carriers and group cooperation agreements (bulk pools), the Commission will consider issuing some form of guidance in a manner that is to be determined.
Technical agreements
Technical agreements
Regulation 4056/86 allows maritime transport providers to conclude agreements which have the sole object and effect to achieve technical improvements or cooperation and are not caught by Article 81(1) of the Treaty (full competition).
Regulation 4056/86 allows maritime transport providers to conclude agreements which have the sole object and effect to achieve technical improvements or cooperation and are not caught by Article 81(1) of the Treaty (full competition).
The Commission concludes that the specific exemption for technical agreements, as confirmed by the Court of Justice, is merely declaratory and therefore proposes to repeal this provision.
The Commission concludes that the specific exemption for technical agreements, as confirmed by the Court of Justice, is merely declaratory and therefore proposes to repeal this provision.
Conflict of laws at international level
Conflict of laws at international level
Regulation 4056/86 provides for a procedure which should be followed in case the application of the Regulation would amount to a conflict with the law of a third country.
Regulation 4056/86 provides for a procedure which should be followed in case the application of the Regulation would amount to a conflict with the law of a third country.
The Commission points out that a conflict of law has not arisen in the past and is unlikely to arise, even if the Liner Conference block exemption is fully repealed.
The Commission points out that a conflict of law has not arisen in the past and is unlikely to arise, even if the Liner Conference block exemption is fully repealed.
It concludes that there would appear to be no justification for maintaining this provision.
It concludes that there would appear to be no justification for maintaining this provision.
The ELAA (European Liner Affairs Association) which represents the liner shipping industry worldwide proposes a new flexible transitional regime which seeks to achieve market stability, but unlike Regulation 4056/86, does not refer to the fixing of prices and freight rates or restrictions to the management of vessel supply.
The ELAA (European Liner Affairs Association) which represents the liner shipping industry worldwide proposes a new flexible transitional regime which seeks to achieve market stability, but unlike Regulation 4056/86, does not refer to the fixing of prices and freight rates or restrictions to the management of vessel supply.
The ECSA (European Community Shipowners Association) which represents European associations of shipowners is opposed to the repeal of the exemption of conferences and agrees to the ELAA proposal as a basis for discussion.
The ECSA (European Community Shipowners Association) which represents European associations of shipowners is opposed to the repeal of the exemption of conferences and agrees to the ELAA proposal as a basis for discussion.
The ESC (European Shippers Council), which represents the national, European and global freight transport interests of European manufactures and retailers, supports the repeal of Regulation 4056/86 since it does not provide any calculable benefit as regards the stability and competitiveness of freight rates or the provision of services.
The ESC (European Shippers Council), which represents the national, European and global freight transport interests of European manufactures and retailers, supports the repeal of Regulation 4056/86 since it does not provide any calculable benefit as regards the stability and competitiveness of freight rates or the provision of services.
The OECD (Organisation for Economic Cooperation and Development) also supports this position in a technical report by its secretariat.
The OECD (Organisation for Economic Cooperation and Development) also supports this position in a technical report by its secretariat.
Your rapporteur's position on the matters raised by the review of Regulation 4056/86 as presented in the White Paper is as follows:
Your rapporteur's position on the matters raised by the review of Regulation 4056/86 as presented in the White Paper is as follows:
(a) The exemption for liner conferences over the last 16 year or so has managed to ensure regular and reliable links at competitive freight rates.
(a) The exemption for liner conferences over the last 16 year or so has managed to ensure regular and reliable links at competitive freight rates.
Your rapporteur would also point out that the present liner conference regime appears much more open 'liberal' than in the past, while it maintains a balance between small and large undertakings and prevents oligopolistic practices.
Your rapporteur would also point out that the present liner conference regime appears much more open 'liberal' than in the past, while it maintains a balance between small and large undertakings and prevents oligopolistic practices.
Bearing in mind recent EU case law which rules that vessel supply management is permitted only on condition that it does not create artificial demand in conjunction with freight rate increases and the power of conferences to fix freight rates is restricted to a significant extent, it may be said that the four cumulative criteria of Article 81(3) of the Treaty have been met, if only partially.
Bearing in mind recent EU case law which rules that vessel supply management is permitted only on condition that it does not create artificial demand in conjunction with freight rate increases and the power of conferences to fix freight rates is restricted to a significant extent, it may be said that the four cumulative criteria of Article 81(3) of the Treaty have been met, if only partially.
(b) Nevertheless, your rapporteur supports the Commission's intention to revise Regulation 4056/86 so as to ensure compliance with the rules of competition chiefly by excluding the possibility of the prior fixing of freight rates.
(b) Nevertheless, your rapporteur supports the Commission's intention to revise Regulation 4056/86 so as to ensure compliance with the rules of competition chiefly by excluding the possibility of the prior fixing of freight rates.
Within this framework, she supports the creation of a system which will allow free access to market information.
Within this framework, she supports the creation of a system which will allow free access to market information.
She considers that the proposal by the European Liners Affairs Association (ELAA) contains interesting elements which could be used by the Commission in drafting the new regulation, which should have a limited timeframe of five years after which a reassessment would take place.
She considers that the proposal by the European Liners Affairs Association (ELAA) contains interesting elements which could be used by the Commission in drafting the new regulation, which should have a limited timeframe of five years after which a reassessment would take place.
This period could provide the Commission with an opportunity to renegotiate the 1974 UNCTAD Code of Conduct for Conferences.
This period could provide the Commission with an opportunity to renegotiate the 1974 UNCTAD Code of Conduct for Conferences.
(c) As regards the Commission's position about bringing tramp vessel and cabotage services within the scope of Council Regulation 1/2003 on 'the implementation of the rules on competition laid down in Articles 81 and 82 of the Treaty, your rapporteur takes the view that the White Paper's approach may be accepted for the tramp sector.
(c) As regards the Commission's position about bringing tramp vessel and cabotage services within the scope of Council Regulation 1/2003 on 'the implementation of the rules on competition laid down in Articles 81 and 82 of the Treaty, your rapporteur takes the view that the White Paper's approach may be accepted for the tramp sector.
As regards cabotage, this sector has already been deregulated since 1993 as part of Regulation 3577/92.
As regards cabotage, this sector has already been deregulated since 1993 as part of Regulation 3577/92.
These services are carried out between ports of the same Member State and do not affect intra-Community trade between Member States (Articles 81 and 82); consequently there is no need or legal obligation to bring this sector under the scope of the provisions of Regulation 1/2003.
These services are carried out between ports of the same Member State and do not affect intra-Community trade between Member States (Articles 81 and 82); consequently there is no need or legal obligation to bring this sector under the scope of the provisions of Regulation 1/2003.
The Commission's intention to bring this sector under the scope of the provisions of Regulation 1/2003 is without any substantive or legal necessity.
The Commission's intention to bring this sector under the scope of the provisions of Regulation 1/2003 is without any substantive or legal necessity.
(d) Your rapporteur does not believe that the provisions contained in Article 2 of Regulation 4056/86 governing the legality of technical agreements should be repealed.
(d) Your rapporteur does not believe that the provisions contained in Article 2 of Regulation 4056/86 governing the legality of technical agreements should be repealed.
The maintenance of a clear legal framework governing technical agreements will contribute to legal certainty and give service providers a clearer orientation.
The maintenance of a clear legal framework governing technical agreements will contribute to legal certainty and give service providers a clearer orientation.
(e) Finally, your rapporteur does not consider that Article 9 of Regulation 4056/86 which provides for negotiations to be held in the event of conflicts between Community law and the law of third countries should be repealed.
(e) Finally, your rapporteur does not consider that Article 9 of Regulation 4056/86 which provides for negotiations to be held in the event of conflicts between Community law and the law of third countries should be repealed.