On 19 January 2023, the CMA published a document seeking views on a proposal to recommend to the then Secretary of State for Business, Energy and Industrial Strategy that she replace the retained CBER when it expires on 25 April 2024 with a Liner Shipping Consortia Block Exemption Order (CBEO).
Following this consultation, and in light of further assessment conducted by the CMA, the CMA no longer proposes to recommend replacement of the retained CBER. The CMA’s provisional view is that the retained CBER should lapse on its expiry date of 25 April 2024, without replacement.
It should be noted that this is a two stage review, and this is only a “provisional” recommendation. However, the fact that the EU Commission has reached the same conclusion as the CMA plus the fact that:
- The CMA has effectively reversed an earlier decision to let some form of Block Exemption Regulation be retained
- Out of four tests the shipping lines failed the first two, so the other two were not investigated indicating that the CMA had strong reasons to meet the conclusions that it did/
This document invites feedback on the CMA’s provisional decision before it reaches a final decision, which will have to be presented to the Department of Business and Trade. In recent weeks, the shipping lines have hit out against the EU judgment and have been lobbying in London for the UK to retain a Block Exemption Regulation. Undoubtedly they will make new submissions and we would urge Members with a maritime interest to consider any points they feel relevant to support the decision it let the Block Exemption to lapse.
This regulatory change if implemented will not end consortia and Alliances but they will permit greater and ongoing scrutiny of such arrangements. The CMA’s recommendations can be read here the provisional decision webpage.
