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EC could introduce container rate rise

22nd October 1992
Page 7
Page 7, 22nd October 1992 — EC could introduce container rate rise
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la Karen Miles • Confidence is rising that hard-pressed container hauliers could receive a rates boost if shipping lines are forced by the EC to alter their practices. This follows agreement by EC Transport Commissioner Karel van Miert to meet representatives of export and import traders next month to discuss the price fixing cartel currently operated by the shipping lines for inland haulage.

According to the traders body, the European Shippers Council, the Commission is "sympathetic" to the charge that the shipping lines are breaking EC law by fixing inland haulage rates to the users.

If the Commission finds in favour of the ESC it has the power to impose fines on the shipping lines worth hundreds of thousands of pounds. An in struction to change the price fixing could lead to better rates for Britain's container hauliers. A decision is expected by the New Year.

The British member of the ESC, the British Shippers Council (BSC), argues that over the past two years shipping lines have combined to increase their charges for inland haulage in this country by an average of 11%. Over the same period container hauliers subcontracting the work have been lucky to secure a 4% rise, it claims.

Brain Haulage, which went into receivership last month, suffered from a container rates squeeze.

BSC shipping manager Chris Welch says: "If we are successful it will lead to a normal market situation and our members should get a better deal." The likelihood is that hauliers will get a fairer share of the benefits.