SIMIC

Accusing carriers of profiteering and taking steps to drive out independent freight forwarders, the association (Comite de liaison Europeen des commissionnaires et auxiliaires de transports du marche commun) says liner practices victimise shippers and consumers because of restricted choice of services and higher rates.

Addressing EU Commissioner for Competition Margrethe Vestager, the European Association for Forwarding, Transport, Logistics, and Customs Service (CLECAT) calls on the commission to urgently investigate under the EU competition rules the impact of issues including vertical integration, consolidation, control of data, and the resulting market dominance.

In particular, they cite the forecasts of over US$200 billion in profits for industry, saying the EU needs to become involved to remove unfair and discriminatory rules.

CLECAT cites the "massive freight rate hikes over the last 18 months," which they contend "have led to damaging inflation and increases in the EU's costs of living." It said carriers are using their capacity management strategies resulting in profiteering and permitting the carriers to acquire further market power to vertically integrate, increase rates, and drive out independent freight forwarders in the downstream market.

They are calling on the European Commission to urgently use its powers of investigation to establish the degree of concentration, consolidation, coordination, and cartelisation in the upstream container liner shipping services markets serving the EU, and the downstream markets for freight forwarding services.