MTI stretches block exemption for liner shipping agreements by five years

Liner shipping services are of prime importance, MTI says.

Transhipment makes up a huge chunk of Singapore’s container volumes, and the Ministry of Trade and Industry has assessed that the city-state wouldn’t be better off if depended only on exports and imports.

As a result of this, Singapore’s MTI has extended its block exemption for liner shipping agreements until 2020, according to a statement by the trade body.

According to the statement, a high degree of connectivity and availability of liner shipping services in Singapore benefits its exporters and importers.

“It is internationally recognised that LSAs, which facilitate the sharing of vessels among liners, enable more frequent services and cost savings for liners,” the statement said.

MTI adds that these agreements may also enable a group of smaller liners to provide services that can compete with their larger counterparts.

“Antitrust exemptions for LSAs generally remain the regulatory norm worldwide,” the statement added.