PROPOSED RENEWAL OF THE BLOCK EXEMPTION FOR VESSEL SHARING AGREEMENTS (VSA) IN RESPECT OF LINER SHIPPING SERVICES THROUGH TRANSPORTATION BY SEA

PUBLIC CONSULTATION

PROPOSED RENEWAL OF THE BLOCK EXEMPTION FOR VESSEL SHARING AGREEMENTS IN RESPECT OF LINER SHIPPING SERVICES THROUGH TRANSPORTATION BY SEA

Section 8(1) of the Competition Act 2010 lays the foundation for the Commission to grant a Block Exemption to a category of an agreement under section 4 which satisfied the four criteria that are provided under Section 5 of the Act.

On 17th March 2022, the Commission received the renewal application of the Block Exemption for the Vessel Sharing Agreements in respect of the Liner Shipping Services through Transportation by Sea from the Malaysia Shipowners Association (MASA) and the Shipping Association of Malaysia (SAM). The renewal application of the Block Exemption was made under the expiry of the similar Block Exemption that was granted earlier on 6 July 2022.

The Commission upon its assessment of the renewal application proposed to renew the said block exemption for another few years. The executive summary of the renewal application for the block exemption is enclosed in the pdf document below:

Executive Summary for The Renewal Application of the Block Exemption for Vessel Sharing Agreement in respect of Liner Shipping Services through Transportation by Sea

Under Section 9 of the Act, before granting and making a decision on the block exemption, the Commission is required to conduct a public consultation and give the members of the public and the stakeholders at least thirty (30) days to make any submission. Therefore, the public consultation for the renewal of the Block Exemption for the Vessel Sharing Agreements in respect of Liner Shipping Services will officially be started on 22 August 2022 until 21 September 2022.  Any opinions, views, inputs, and feedback may be submitted by uploading the feedback in the following section or email to [email protected].

Upload Your Feedback for the Public Consultation

In view of the same, the MyCC will organize a Physical Public Consultation Session on the following date and venue to gather feedback from the stakeholder:

Date : 13 September 2022
Time : 9.30am – 1.00pm
Venue : The Westin, Bukit Bintang,
Kuala Lumpur

The public consultation session is FREE OF CHARGE and please propose names for us to reserve seats by filing the enclosed online attendance confirmation form before 9 September 2022. Kindly note that reservation is based on a first come first serve basis.

You may register by clicking the link below;

REGISTER

For further enquiries, please contact:
[email protected]

 

*Technical Note:

Liner shipping services through transportation by sea means any services provided by liner shipping operator to any transport user upon payment for the containerization of goods and by using transportation by sea on a regular basis through any particular route between ports and in accordance with timetables and sailing dates which are made available.

Vessel Sharing Agreements means an agreement between liner shipping operators where under the agreement the parties to the agreement shall only discuss and agree on operational arrangements relating to liner shipping services through transportation by sea, including the coordination or joint operation of vessel services, and the exchange or charter of vessel space.

The Vessel Sharing Agreements shall not include any inland transport for carriage of goods which is part of direct services provided by logistic providers, forwarders, depot operators, truckers, railroaders, or off-dock consolidation facility, off-dock storage, and warehousing services.