New Delhi watchdog expected to scrutinize conference rate-fixing

India's exporters to Europe are pinning hopes for relief from rising freight rates after demands were levelled at container shipping lines by the Competition Commission of India (CCI) to end price-fixing, reports The Times of India.

Liner companies operate through the London-based rate-setting India Pakistan Bangladesh Ceylon Conference (IPBCC), which moves 70 per cent of India's EU-bound cargo, and whose members include Hapag-Lloyd, Maersk Line and the Shipping Corporation of India.

Last week, the Indian government's CCI, headed by Vinod Kumar Dhall, met representatives of the conference's 18 member shipping lines. "We apprised the IPBCC about the Competition Act and its future strengthening," said Mr. Dhall.

The CCI, which will soon replace the Monopolies and Restrictive Trade Practices Commission, does not yet have powers to launch an inquiry or stop mergers that might result in cartels, nor can it exact penalties. But with expected amendments to the Act coming in the current sitting of parliament, such powers are anticipated.

Even without full powers, the CCI initiatives is considered important by shippers who expect concessions to flow much before October 2008, the deadline set by the European Union to remove anti-trust exemptions of IPBCC.

"The CCI intervention will at least pave the way for shippers to negotiate rates with these liner (shipping) companies", said Western India Shippers Association secretary SRL Narasimhan.