Transport Canada is reviewing how it regulates cooperative agreements between ocean carriers. Currently, the Shipping Conferences Exemption Act exempts certain agreements from the Competition Act, but with changes in global shipping, these “shipping conferences” no longer operate on Canada’s major trade routes. Instead, “shipping alliances,” which coordinate services but do not set rates or capacity, have become the norm.
This review follows recent concerns about competition in marine shipping, heightened by fluctuating freight rates during the pandemic. Other countries, like the US and the EU, have also strengthened regulations on these agreements.
Transport Canada is seeking feedback on how repealing the Shipping Conferences Exemption Act might affect competition and whether current complaint mechanisms for shipping alliances are adequate.
