FreightWaves explores the archives of American Shipper’s nearly 70-year-old collection of shipping and maritime publications to showcase interesting freight stories of long ago, says an article published on freight waves website.
Summary
- The Shipping Act of 1984 was a significant game-changer in U.S. liner trades, introducing major changes in the industry.
- The Act provided ocean common carriers with more, not deficient, antitrust immunity for their joint activities, including collective ratemaking.
- The Shipping Act of 1984 was enacted in response to a severe recession and the need for carriers to better navigate the economic conditions.
- The Act led to a shift to “marketplace regulation,” where carriers’ arrangements were subject to greater commercial regulation by their shipping customers.
- The Act also introduced a new and more relaxed substantive standard for government review of agreements.
The Shipping Act Of 1984, A Game-Changer In Maritime Reform
The Shipping Act of 1984 marked a significant shift in the U.S. liner trades, bringing about major changes in the industry. The extent and pace of change were not solely determined by the Act itself, but largely by the implementing actions of the Federal Maritime Commission and the responses of carriers and shippers.
The Uniqueness Of The Shipping Act Of 1984
The Shipping Act of 1984 stands out as unusual legislation, with its philosophy and approach differing from the recent and more publicized “deregulation” statutes affecting U.S. domestic airline, trucking, and railroad industries. The Act provides ocean common carriers operating in foreign commerce with more, not less, antitrust immunity for their joint activities, including collective ratemaking.
The Shipping Act, A Response To Industry Needs
The Act was enacted against the backdrop of a severe recession, with carriers advocating for legislative reform to better equip them to navigate the dreary economic conditions. The truly international character of ocean shipping distinguished it from the deregulated domestic airline, trucking, and rail industries in the eyes of Congress.
The Net Result Of The Shipping Act Of 1984
The net result of the Shipping Act of 1984 was that ocean common carriers and conferences were given greater freedom to enter into cooperative agreements without extensive governmental preclearance or antitrust exposure. However, this freedom came with the responsibility of being subject to greater commercial regulation by their shipping customers.
The Shipping Act Of 1984, A New Era Of Marketplace Regulation
The Shipping Act of 1984 marked a shift to “marketplace regulation,” where carriers’ arrangements were now subject to greater commercial regulation by their shipping customers, who were provided new legal rights.
The Intermodal Conference Agreements In The Shipping Act Of 1984
The Shipping Act of 1984 finally caught up with the container revolution by clearly providing that conferences may receive authority and antitrust immunity to set rates for intermodal services. This change gave carriers a chance to compete for shippers’ intermodal cargo through the conference system.
A New General Standard In The Shipping Act Of 1984
The Shipping Act of 1984 introduced a new and more relaxed substantive standard to be applied in government review of agreements. This new general standard, section 6(g), allowed the government to enjoin “substantially anti competitive agreements.”
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Source: freight waves
