Container Shipping in Europe: Data for the Evaluation of the EU Consortia Block Exemption”, Working Document, International Transport Forum, Paris
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CPB Corporate Partnership Board Container Shipping in Europe Data for the Evaluation of the EU Consortia Block Exemption Container Shipping in Europe Data for the Evaluation of the EU Consortia Block Exemption The International Transport Forum The International Transport Forum is an intergovernmental organisation with 59 member countries. It acts as a think tank for transport policy and organises the Annual Summit of transport ministers. ITF is the only global body that covers all transport modes. The ITF is politically autonomous and administratively integrated with the OECD. The ITF works for transport policies that improve peoples’ lives. Our mission is to foster a deeper understanding of the role of transport in economic growth, environmental sustainability and social inclusion and to raise the public profile of transport policy. The ITF organises global dialogue for better transport. We act as a platform for discussion and pre- negotiation of policy issues across all transport modes. We analyse trends, share knowledge and promote exchange among transport decision-makers and civil society. The ITF’s Annual Summit is the world’s largest gathering of transport ministers and the leading global platform for dialogue on transport policy. The Members of the Forum are: Albania, Armenia, Argentina, Australia, Austria, Azerbaijan, Belarus, Belgium, Bosnia and Herzegovina, Bulgaria, Canada, Chile, China (People’s Republic of), Croatia, Czech Republic, Denmark, Estonia, Finland, France, Georgia, Germany, Greece, Hungary, Iceland, India, Ireland, Israel, Italy, Japan, Kazakhstan, Korea, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Mexico, Republic of Moldova, Montenegro, Morocco, the Netherlands, New Zealand, North Macedonia, Norway, Poland, Portugal, Romania, Russian Federation, Serbia, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Turkey, Ukraine, the United Arab Emirates, the United Kingdom and the United States. International Transport Forum 2 rue André Pascal F-75775 Paris Cedex 16 [email protected] www.itf-oecd.org ITF Working Document Any findings, interpretations and conclusions expressed herein are those of the authors and do not necessarily reflect the views of the International Transport Forum or the OECD. Neither the OECD, ITF nor the authors guarantee the accuracy of any data or other information contained in this publication and accept no responsibility whatsoever for any consequence of their use. Neither the OECD, ITF nor the authors guarantee the accuracy of any data or other information contained in this publication and accept no responsibility whatsoever for any consequence of their use. This document, as well as any data and map included herein, are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area. Cite this work as: ITF (2019), “Container Shipping in Europe: Data for the Evaluation of the EU Consortia Block Exemption”, Working Document, International Transport Forum, Paris. CONTAINER SHIPPING IN EUROPE: DATA FOR THE EVALUATION OF THE EU CONSORTIA BLOCK EXEMPTION Acknowledgements This report was written by Olaf Merk, in the context of the EU Evaluation of the Consortia Block Exemption Regulation. It builds on the International Transport Forum (ITF) report “The Impact of Alliances in Container Shipping”, released in November 2018. Invaluable data contributions were provided by Sea Intelligence, UNCTAD and Alphaliner. Feedback and comments on a draft version of the report were provided by Stephen Perkins, Michael Kloth and Hilary Gaboriau of the ITF. The report benefits from discussions held during the ITF Stakeholder Meeting on Container Shipping, organised 8 February 2019 in Paris at the OECD. © OECD/ITF 2019 3 CONTAINER SHIPPING IN EUROPE: DATA FOR THE EVALUATION OF THE EU CONSORTIA BLOCK EXEMPTION Table of contents Market shares ..................................................................................................................................... 5 Market shares by alliance ........................................................................................................................ 5 Market share by carrier ........................................................................................................................... 8 Are alliances covered by the EU Block Exemption Regulation? ............................................................. 11 Which consortia are covered by the EU Block Exemption Regulation? ................................................. 12 Are the “relevant markets” still relevant? ............................................................................................. 14 Implications for the Evaluation of the Block Exemption Regulation ...................................................... 14 Vertical integration ....................................................................................................................... 16 Feeder operations .................................................................................................................................. 16 Tonnage providers ................................................................................................................................. 17 Terminal operations ............................................................................................................................... 19 Customer satisfaction .................................................................................................................. 27 Performance indicators ............................................................................................................... 29 Fleet utilisation ...................................................................................................................................... 29 Direct liner connectivity ......................................................................................................................... 29 Port-to-port connections ....................................................................................................................... 31 Weekly service frequency ...................................................................................................................... 33 Schedule reliability ................................................................................................................................. 34 Blank sailings .......................................................................................................................................... 35 Conclusion ........................................................................................................................................... 38 Market concentration ............................................................................................................................ 38 Vertical integration ................................................................................................................................ 38 Performance .......................................................................................................................................... 39 Notes ...................................................................................................................................................... 40 References .......................................................................................................................................... 41 Annex 1: Market shares of liner consortia ...................................................................... 43 Annex 2: Direct liner connectivity in EU countries ..................................................... 48 Annex 3: Tonnage providers in 2012 and 2019 ........................................................... 54 4 © OECD/ITF 2019 CONTAINER SHIPPING IN EUROPE: DATA FOR THE EVALUATION OF THE EU CONSORTIA BLOCK EXEMPTION Market shares Market share data are important for assessing risks of potential market power and potential abuse of market power. This section presents the available data on market shares in container shipping related to European trade lanes. It looks at concentration with regards to shipping lines. Concentration in terminal operations and ancillary services will be treated in the next chapter. It is argued here that data availability would need to improve for effective implementation of competition regulation for liner shipping. Market shares by alliance Within the past five years, alliances have become the dominant players on the main East-West routes involving Europe (North Europe, Asia-Mediterranean (Asia-Med), North Europe-North America East Coast and Mediterranean-North America East Coast (Med-North America East Coast)). Until 2015, all alliances combined held market shares below 50% on all of these four trade lanes, ranging from 49% (Asia-North Europe) to 0% (Med-North America East Coast) in the last quarter of 2014. This changed in 2015 with the arrival of the 2M and O3 Alliances. The market share of non-alliances has decreased further in 2017 when container shipping witnessed the transition from four to three liner shipping alliances (Figure 1). Figure 1. Market shares of non-alliances on main European trade lanes per quarter, 2012-2018 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Med-N America East Coast N Europe-N America East Coast Asia-Med Asia-North Europe Source: based on data from Sea Intelligence. © OECD/ITF