Indian shipping lines end cartel to fix tariff

Merchandise exporters would soon find their logistics costs coming down significantly.

Shipping companies that handle most of the consignments from India have agreed to discontinue their dialogue among themselves to fix tariff — a practice that regulators consider as cartelization. The move comes after the commerce ministry and the competition regulator, the Competition Commission of India (CCI), stepped up pressure on the companies to end their alleged cartelization. State-owned Shipping Corporation of India is a major participant in the 15-member combine of ship owners offering services to exporters from South Asia and other regions under the umbrella of India Pakistan Bangladesh Ceylon Conference. Others include France’s CMA CGM, Germany’s Hamburg Sud and Hapag-Lloyd, United Arab Shipping Company and K Line America Inc. The shipping companies told CCI on Thursday they would no longer hold meetings to discuss tariff. Instead of conferences, ship owners would set up a consortium like the star alliance in the airline industry. The CCI told the ship owners that approval to such a consortium could only be given after examining the content of its charter.

Read More