Review of Part X of the Trade Practices Act 1974: International Liner Cargo Shipping

Abstract

The Productivity Commission's inquiry report, 'Review of Part X of the Trade Practices Act 1974: International Liner Cargo Shipping', was released on 5 October 2005. The Commission was asked to examine and report on the rational, effects and alternatives to Part X, which allow international liner operators to cooperate and form conferences under the conditional exemptions from the Act.

The Commission maintains that evaluation and selective registration of agreements is necessary if Australia is to be confident that only those that provided a net public benefit are allowed to operate. It maintained its preferred option for authorisation under Part X. Under this option, Part X would be repealed and the liner cargo shipping industry would be subject to the general provision of the Act. The Commission proposed a four-year transitional arrangement. If Part X is not repealed, the Commission recommended improving current arrangements through either selective registration or excluding from registration 'discussion agreements'.

Keywords: Part X, trade practices Act 1974, international liner cargo shipping, liner cargo shipping, Australian shipping, ship conference

JEL Classification: Z