ACCC examines the impact on competition of vertical integration by shipping lines

Monday, January 8, 2024
As outlined in our August 2023 Shipping Report, Freight & Trade Alliance (FTA) and the Australian Peak Shippers Association (APSA) provided a detailed submission on 23 August 2023 to the Australian Competition and Consumer Commission (ACCC) and on 29 August 2023 met with ACCC representatives addressing:
  • shipping competition (repeal of Part X, exclusive dealings via vertical integration, quayside cost recovery);
  • Terminal Access Charges (stevedores, empty container parks); and
  • container detention (import and export),
Specific reference was made to 'exclusive dealings' via vertical integration with member reports of scenarios whereby shipping lines and stevedores are allegedly offering capacity and / or significantly discounted rates contingent on using their other 'vertically integrated' services such as landside transport, freight forwarding and customs clearances.

The FTA / APSA submission to the ACCC is available HERE

Whilst benefits derived from vertical integration offerings are encouraged, FTA and APSA have continued to bring concerns to the attention of the ACCC since the peak of the pandemic when freight capacity was in high demand and evidence of potential 'exclusive dealings' arrangements were provided.

On 8 September 2023, further advice was received from the ACCC seeking feedback direct from FTA / APSA members in the form of a survey providing an opportunity to share experience in dealing with shipping lines, including those who also provide:
  • Freight forwarding
  • Road transport
  • Rail transport
The ACCC has reviewed survey responses and have provided the following general feedback about the information obtained:
  • a majority of survey participants indicated they were freight forwarders:
  • most respondents indicated they had multiple shipping lines to choose from, except on some specific shipping routes;
  • some respondents noted the presence of bundled offers for landside transport and shipping by vertically integrated shipping lines; and
  • multiple responses raised issues relating to container detention charges.
The ACCC has stated that they have closely reviewed all the responses and will use the information to inform their enforcement and other work. The ACCC are continuing to monitor the international trade sector and will conduct investigations where conduct may contravene the Competition and Consumer Act.

FTA / APSA members may also contact the ACCC about anti-competitive conduct at any time by making a report on their website or by calling 1300 302 021 - Monday to Friday 9 am to 5 pm AEST/AEDT. 

Paul Zalai - Director FTA | Secretariat APSA | Director GSF