The Association of
Shipping Lines (ASL)
has just withdrawn its
original application
to the Competition
Commission for exemption
which has now become
out of date because of
changing circumstances
in the industry since
that application was first
submitted, according to
Tshegofatso Radinku
of the enforcement and
exemptions division of the
Competition Commission
(CC).
ASL has also indicated
to the CC, he added, that
they are in the process of
redrafting the application
to cater for all the changes
that have occurred since
the original submission was
made in 2005.
What the ASL has
undertaken to do, Andrew
Thomas, CEO of Ocean
Africa Container Lines
(OACL), told FTW, is to
have the new application
in front of the CC in about
three months.
“The primary area we
wish the CC to advise on,”
he said, “is to indicate their
approval of vessel-sharing
agreements. The vast
majority of services which
call in SA are VSAs, and we
need assurance from the CC
that we can continue doing
this.”
The lines find this the
only cost-efficient way
to conduct their services,
he said. If the application
failed, many services would
be withdrawn, and SA
shippers/importers would
suffer from the resultant
limited capacity.
“These agreements
provide an economic benefit
for SA shippers,” Thomas
said.
Shipping lines to redraft application to Competition Commission
25 May 2012 - by Alan Peat
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