MOL withdraws from European liner group

MOL has resigned from the European Liner Affairs Association (ELAA).

The Japanese carrier also announced last week that it was withdrawing from two transpacific freight conferences, the Transpacific Stabilization Agreement and the Canada Transpacific Stabilization Agreement, effective Nov. 27.

With the European Union's abolition of liner antitrust immunity, it has become extremely difficult to align the business processes of our entire organization when its regional divisions must operate to differing standards, Masakazu Yakushiji, executive vice president in charge of MOL's Liner Division explained as it withdrew from the two transpacific conferences. 

Chris Bourne, executive director of the ELAA, said MOL gave similar reasons for quitting that group.

It's sad, but they are the only one that seems to be concerned, Bourne said. He noted that since September, the ELAA's ranks have actually swelled, from 21 to 30, which will drop to 29 with MOL's decision to leave.

Bourne, ironically, former managing director of MOL (Europe) Ltd, said MOL's decision to resign, announced in October, will not actually go into effect until the end of the year and be implemented six months later.

Headquartered in Brussels, the ELAA was established in May 2003 to represent the liner shipping companies when the European Commission decided to review its bloc exemption for liner shipping companies. The EC ended the exemption on Oct. 17.