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Carriers’ antitrust immunity may be next reform target
With OSRA 2022 signed into law, further legislation could be in the works. The elimination of ocean carriers’ antitrust immunity was briefly proposed earlier this year but shot down due to its potential impact on carriers’ ability to operate within alliances.
Some view antitrust immunity as unfinished business. The passage of new regulation may not be completely out of reach. This is despite the FMC concluding that competition in container shipping is “vigorous” and that rates rose to all-time highs last year and remain significantly elevated now due to market supply and demand.
The potential impact of a revocation of ocean carrier antitrust immunity in the U.S. would be significant. It would focus on the 2M, Ocean, and THE alliances. These three alliances control the dominant share of freight in the East-West trades. Sources differ on whether eliminating antitrust immunity would spell the end of alliances, but many believe the alliances would be forever constrained, if not eliminated.
Ocean carrier executives believe such an outcome would fundamentally change the industry. They believe it would lead to another round of consolidation among all but the largest carriers. Some analysts believe that this change would reduce competition.
About O’Neill Logistics
O’Neill Logistics is a leading 3PL with operations in Rancho Cucamonga, CA; Savannah, GA; and Newark/Monroe, NJ. We service many verticals including Garments, Fashion Accessories, Footwear, Furniture, Home Goods, & Electronics. Additionally, we offer omni-channel distribution and all value-added services. Lastly, we focus on retail “drop shipment” fulfillment and item-level fulfillment services with same-day service offerings.
O’Neill Logistics has over 2 million square feet of state-of-the-art facilities. Additionally, we offer dray services to support the warehouses and provide distribution to retailers and wholesalers. Our reliable 3PL platform combines sophisticated technology with robust, flexible processing designs and speed-to-market gateway models.
Lastly, we aim to simplify your supply chain. We deliver exceptional service and can optimize your operational performance. Therefore, we aim to build, protect and foster strong business partnerships.
