Oberstar Bill Takes Aim at U.S. Box Trades
Duncan Smith, partner in Blank Rome, was recently quoted in Rajeesh Joshi and Janet Porter's Lloyd's List article, "Oberstar Bill Takes Aim at U.S. Box Trades", published on September 24, 2010, regarding the timeframe for the abolishment of antitrust immunity for ocean carrier agreements in the U.S. if the Oberstar Bill introduced to the House of Representatives becomes law.
The Bill, spearheaded by Democratic Congressman James Oberstar and cosponsored by his party colleague Elijah Cummings, would stop lines from talking about, fixing, or regulating freight rates through conferences or discussion groups, such as the Transpacific Stabilization Agreement.
Mr. Oberstar stated that “Congress has long been concerned about the anti-competitive impact of these conference agreements. Even under the current regulatory scheme, immunity for such agreements has long out-lived its usefulness.”
Capitol Hill insiders do not believe that any legislative progress will occur this session as Congress expires in two weeks prior to the mid-term election in November. They view the Bill as a tactical measure to begin debates on the subject and to put a spotlight on the issue until next year.
Mr. Smith weighed in, saying that "There is still a theoretical possibility that the Bill could pass this year. However, in practical terms, this is unlikely. This is a serious issue, and I expect it to reappear next year for a thorough discussion."
To read this article online, visit Lloyd's List at www.lloydslist.com.
Reprinted with permission from Lloyd's List.