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K Line quits ELAA

K Line quits ELAA
K LINE has become the second Japanese shipping company to withdraw from the European Liner Affairs Association.

K LINE has become the second Japanese shipping company to withdraw from the European Liner Affairs Association.

K LINE has become the second Japanese shipping company to withdraw from the European Liner Affairs Association.

Explaining the line"s decision to withdraw from the association, K Line containership business manager Shuichi Kimura, said the ELAA was established to discuss maintaining the block exemption from anti-trust regulations for liner shipping, however the European Commission abolished exemption in October last year.

?Therefore we consider the original purpose or role of ELAA has been concluded,? he said.

K Line did not comment whether the possibility that the ELAA could run afoul of European Union anti-trust regulations was a factor in its decision.

This was the reason that MOL quit the association in November last year. Atlantic Container Line, which resigned from the association earlier last year, also considered that membership risks outweighed the benefits.

With the abolition Far Eastern Freight Conference and other liner conferences in Europe on October 18 last year, the ELAA took up a wider role as a trade association. In particular, it focuses on intelligence gathering and provides data and information on seven major trade routes to and from Europe.

The ELAA also covers a larger range of trades than the FEFC which was confined to the Asia-Europe trade.

It is understood K Line did see not sufficient benefit in remaining a member of ELAA.

K Line remains a member of the Transpacific Stablization Agreement, which MOL also quit last year.

www.TurkishMaritime.com.tr

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