On 1 April 2024, pursuant to section 8(1) of the Competition Act 2010 (‘CA 2010’) the Malaysia Competition Commission (‘MyCC’) issued the Competition (Block Exemption for Vessel Sharing Agreements in respect of Liner Shipping Services through Transportation by Sea) Order 2024 (‘BEO’) for certain vessel-sharing agreements (‘VSAs’) between liner shipping operators in which the parties to the VSAs may discuss and agree on the operational arrangements relating to liner shipping services through transportation by sea, which includes the coordination or joint operation of vessel services and the exchange or charter of vessel space.
 
By way of this BEO, the VSAs entered into by liner shipping operators are exempted from section 4 of the CA 2010 which prohibits agreements between enterprises that have the object or effect of significantly preventing, restricting or distorting competition in any market for goods or services.
 
This is the fourth BEO issued by the MyCC in respect of VSAs and is effective for the period 7 July 2022 to 6 July 2025 (unless earlier withdrawn by the MyCC).
 
The liner shipping industry remains the first and only industry in Malaysia to date to receive formal block exemptions under the CA 2010 since it came into force in 2012.
 
Tan Shi Wen (Partner) of the Competition Law Practice of Skrine represented the liner shipping operators in all four applications for the block exemptions.