Australian consumers are being ripped off by international shipping companies that are teaming up to keep freight costs high, the former competition watchdog Rod Sims has warned.
The ACCC, while not commenting directly on this agreement, has called for more powers to crack down on collusion. The competition watchdog does not have the authority to regulate such arrangements, despite being controversial.“When they get together … like this, it increases prices. These type of agreements really do a lot of damage to the Australian economy,” Sims said.
The MUA secretary, Paddy Crumlin, said the deal would result in 10 fewer vessels coming to Australia. Guardian Australia has been unable to verify that figure and ZIM and MSC have been contacted for comment. When the deal was announced the ZIM chief executive, Eli Glickman, said the deal was designed to “significantly enhance operational efficiencies” and confirmed the Australian market would be affected.
The ACCC has reiterated its call for more powers to crack down on collusion and “to encourage greater competition between shipping companies on Australian trade routes”. It wants a loophole limiting its role to be removed. “This will include looking at competition laws, policies and institutions and focusing on reforms that would increase productivity and reduce the cost of living,” Leigh said.“If two or three shipping lines cooperate … when just one line can operate a route, shipping lines may avoid fighting for the single efficient market slot with immunity from Australia’s competition laws,” the Productivity Commission report said.