By a notification of 4 July 2018, the Ministry of Corporate Affairs (hereinafter referred to as MCA) granted a 3-year extension of the existing derogation from vessel-sharing contracts[i] (`VSA`) from the scope of Section 3 of the Competition Act 2002[ii], which deals with anti-competitive agreements. Article 3(2) of the Competition Act 2002 legally nullifies any form of anti-competitive agreement[iii]. The granting of the exemption to VSAS in India means that such agreements are not contrary to competition within the meaning of the Competition Act 2002 and, therefore, in India. However, the granting of the VSAS waiver in India is mixed with its own shortcomings, particularly in relation to the exception granted to ship-sharing agreements or similar agreements in different parts of the world. competition.cyrilamarchandblogs.com/2018/07/extension-competition-law-exemption-vessel-sharing-agreements/#more-2109 A ship-sharing agreement is usually concluded between different container shipping companies that agree to operate a regular service along a given route with a number of ships. Vessel Sharing Agreement Under the Vessel Sharing Agreement, two (or more) shipowners undertake to provide each other with a certain number of slots on certain vessels or routes. However, the current exemption regime for vehicle sharing agreements in India is very ambiguous and therefore leaves a number of important questions unanswered. Unlike the European Union[xxi], Hong Kong[xxii] and Singapore[xxiii], the relevant notifications of the MCA have never been defined from time to time and still do not define what a ship-sharing agreement/regular agreement/maritime consortium agreement entails with regard to the exemption granted under the Competition Act. In the absence of such a definition, it is therefore difficult to determine which types of agreements and which ingredients are excluded from the reference area of section 3 of the Competition Act 2002 with regard to vessel sharing.
It is not necessary for each of the partners to have an equal number of vessels. I would be happy to have more information about this: 1. Is VSA the same as Slot Charter? What are the financial arrangements between the different companies operating under a VSA? 3. How to manage a situation where one of the operators does not have reservations corresponding to his share of accommodation or has more reservations compared to his slot-share? [xiv] COMMISSION REGULATION (EC) No 906/2009 of 28 September 2009 on the application of Article 81(3) of the Treaty on the Functioning of the European Union to certain categories of agreements, decisions and concerted practices between liner shipping companies (consortia), Official Journal of the European Union, 29 September 2009 eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:32009R0906&from=EN. Hello Dang, in a VSA, you usually do NOT get two VSLS on the same service that simultaneously calls the same port. However, in some cases, this is possible due to ship consolidations and delays in a given port. In this case, the berth is arranged according to the port. At this stage, it becomes very important to analyse the state of play in Europe with regard to the exemption of Vessel`s sharing agreements from competition law in the European Union. The legal order of the European Union prohibits all agreements restricting competition on the market, in accordance with Article 101(1)(ix) and Article 101(2)(x) of the Treaty on the Functioning of the European Union (`TFEU`). However, the Consortia Block Exemption Regulation[xi] (`CBER`) allows shipping companies with a combined market share of less than 30%[xii] to conclude cooperation agreements for the provision of common freight transport services (referred to as consortia or consortia), which prevents such agreements from concluding anti-competitive agreements within the meaning of Article 101, paragraph 1 of the Treaty on the Functioning of the European Union. . .