EC probes whether feeders laid up to boost charter rates

THE European Commission has launched a formal antitrust enquiry into the "Baltic Max Feeder" scheme to determine whether the alleged practice may have breached European Union rules on restrictive business practices.

The move was prompted by EC concerns that the scheme "may be aimed at reducing capacity and therefore at pushing up charter rates for such vessels," it said.

The Baltic Max Feeder scheme is believed to be an attempt by European shipowners to "collectively agree to cover the costs of laying up feeder vessels and removing them from service," reports the American Shipper.

It cited the EC as saying that, "opening antitrust proceedings does not mean that the commission has conclusive proof of an infringement. It only signifies that the commission will conduct an in-depth investigation."

According to the European Commission, the "Baltic Max Feeder scheme has been elaborated and promoted by Anchor Steuerberatungsgesellschaft mbH, a German tax advisor, as a response to the current overcapacity of feeder container vessels, which has brought charter rates down," the report added.

Source: www.schednet.com