MOL Resigns From Transpacific Liner Agreements
Japanese carrier Mitsui O.S.K. Lines (MOL) yesterday announced it will resign from the Transpacific Stabilization Agreement (TSA) and the Canada Transpacific Stabilization Agreement (CTSA), effective Nov. 27.
The company is leaving the two research and discussion groups because the conference system on trade routes with Europe was creating conflict in the way it does business in the two hemispheres.
"With the European Union's abolition of liner anti-trust immunity, it has become extremely difficult to align the business process of our entire organization when its regional divisions must operate to differing standards," says Masakazu Yakushiji, executive VP of MOL's liner division. "Having done a thorough analysis of marketplace dynamics and the roles of TSA/CTSA relative to our unique ability to differentiate, we concluded MOL and its customers would be better served by conducting business independently from transpacific liner agreements."
Discussion agreements have antitrust immunity to discuss rates and agree on voluntary guidelines, but cannot set rates.
MOL has been a member of TSA and CTSA since their inception in 1989, but resigned from the westbound discussion agreements in June 2005.