Competition and Consumer (Designated Shipper Bodies) Amendment Declaration 2019

Administered by Department of Infrastructure, Transport, Regional Development, Communications, Sport and the Arts

Legislation au F2019L00265 Not in force Legislative Instrument

Legislation content

Explanatory Statement

Issued by Authority of the Minister for Infrastructure, Transport and Regional Development

Competition and Consumer Act 2010

Instrument of Competition and Consumer (Designated Shipper Bodies) Amendment

Declaration 2019

 

Legislative Authority

Section 10.03 of Part X of the Competition and Consumer Act 2010 (the Act) provides that if the Minister is of the opinion that an association represents the interests, in relation to outwards or inwards liner cargo shipping services, of Australian shippers, the Minister may, by legislative instrument, declare that the association is a designated shipper body for the purposes of Part X of the Act. The Instrument of Competition and Consumer (Designated Shipper Bodies) Amendment Declaration 2019 (the Instrument) is a legislative instrument for the purposes of the Legislation Act 2003.

Purpose

The Instrument amends the Competition and Consumer (Designated Shipper Bodies) Declaration 2018 to specify that the Australian Peak Shippers Association is a designated inwards peak shipper body for the purposes of Part X.  A designated inwards peak shipper body represents the interests, in relation to inwards liner cargo shipping services, of Australian shippers generally.

Part X of the Act provides Australian exporters and importers with countervailing powers to strengthen their negotiating ability with conferences. Under Section 10.41 of the Act, parties to a registered conference agreement are to take part in negotiations with the relevant designated shipper body in relation to negotiable shipping arrangements.

Background

The Minister for Infrastructure, Transport and Regional Development is the Minister responsible for Part X of the Act. Part X of the Act provides limited conditional exemptions from competition rules that would otherwise prevent restrictive trade practices (Section 45 and 47 of the Act).  International liner shipping companies may form agreements relating to the provision of liner cargo shipping services and seek registration of such agreements under Division 6 of Part X of the Act. If an agreement is registered under Part X of the Act, international liner shipping companies may collaborate as conferences to coordinate joint services, share capacity and agree on freight rates. Liner shipping comprises scheduled services for non-bulk cargo, mostly carried in containers.

Consultation

The Department consulted with peak industry shipping bodies (representing the customers of the shipping lines) and those associations currently declared peak or secondary shipper bodies in late 2017. These organisations represent industry stakeholders for the administration of Part X of the Act.

The consultation process included providing the then existing Instrument and an extract of the Act referring to the role of a peak or secondary shipper body to stakeholders for comment. The shipper bodies were requested to provide feedback/comments and nominations for declaration as a peak or secondary shipper body.  In the absence of any Designated Peak Inwards shipper body, further consultation was undertaken in 2018 to fill this role.

Consultation was also conducted with relevant government agencies. The Attorney General’s Department was consulted on the content of the Statement of Compatibility with Human Rights.

Following signature of the new Instrument, the Department will provide copies to stakeholders and arrange for publishing on the Federal Register of Legislative Instruments.

 

Regulation Impact Statement

The Office of Best Practice Regulation was consulted and advised that a Regulation Impact Statement is not required (OBPR ID 22770).

Statement of Compatibility with Human Rights

The Instrument is compatible with the human rights and freedoms recognised or declared under Section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011. A full Statement of Compatibility with Human Rights is attached.


Statement of Compatibility with Human Rights

 

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

Instrument of Declaration of Competition and Consumer (Designated Shipper Bodies) Amendment Declaration 2019 Pursuant to Subsection 10.03 of the Competition and Consumer Act 2010

 

This disallowable legislative instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in Section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

Overview of the Disallowable Legislative Instrument

The Minister for Infrastructure, Transport and Regional Development is the Minister responsible for Part X of the Competition and Consumer Act 2010 (the Act).  Part X of the Act provides limited conditional exemptions from competition rules that would otherwise prevent restrictive trade practices (section 45 and 47). International liner shipping companies may form agreements relating to the provision of cargo shipping services and seek registration of such agreements under Division 6, Part X of the Act. If an agreement is registered under Part X of the Act, international liner shipping companies may collaborate as conferences to coordinate joint services, share capacity and agree on freight rates. Liner shipping comprises scheduled services for non-bulk cargo, mostly carried in containers.

The Instrument amends the Competition and Consumer (Designated Shipper Bodies) Declaration 2018 to specify that the Australian Peak Shippers Association is a designated inwards peak shipper body for the purposes of Part X.  Designated shipper bodies represent the interests of Australian shippers. Part X of the Act provides Australian exporters and importers with countervailing powers to strengthen their negotiating ability with conferences. Section 10.29 of the Act requires parties to a provisionally registered conference agreement to take part in negotiations with the designated peak shipper body or if there is not at that time a designated peak shipper body, the designated secondary shipper body nominated by the Registrar for the purposes of Section 10.29 of the Act. 

In accordance with Section 10.41 of the Act, parties to a registered conference agreement shall take part in negotiations with the relevant designated shipper body in relation to negotiable shipping arrangements (including any provisions of the agreement that affect those arrangements) whenever reasonably requested by the shipper body, and consider the matters raised, and representations made, by the shipper body.

Human rights implications

This Disallowable Legislative Instrument does not engage any of the applicable rights or freedoms.

Conclusion

This Disallowable Legislative Instrument is compatible with the Human Rights (Parliamentary Scrutiny) Act 2011 as it does not raise any human rights issues.

The Hon Michael McCormack MP

Deputy Prime Minister and Minister for Infrastructure, Transport and Regional Development

Overview

The Competition and Consumer (Designated Shipper Bodies) Amendment Declaration 2019, enacted under the authority of the Minister for Infrastructure, Transport and Regional Development, amends the Competition and Consumer (Designated Shipper Bodies) Declaration 2018. This legislative instrument seeks to address a specific gap in the representation of Australian shippers in negotiations concerning inwards liner cargo shipping services. The Act was introduced to ensure that Australian exporters and importers have countervailing powers when dealing with shipping conferences, thereby strengthening their negotiating positions. This amendment declares the Australian Peak Shippers Association as a designated inwards peak shipper body, thereby filling the void left by the absence of an established peak shipper body for inwards services. The policy objective is to enhance the balance of power in negotiations between Australian shippers and international liner shipping companies, facilitating fairer and more equitable shipping arrangements.

Scope and Application

The Competition and Consumer (Designated Shipper Bodies) Amendment Declaration 2019 amends the Competition and Consumer (Designated Shipper Bodies) Declaration 2018 to designate the Australian Peak Shippers Association as a designated inwards peak shipper body for the purposes of Part X of the Competition and Consumer Act 2010. This legislative instrument applies to the Australian Peak Shippers Association, which represents the interests of Australian shippers in relation to inwards liner cargo shipping services. The Instrument is a legislative instrument made under the authority of the Minister for Infrastructure, Transport and Regional Development and amends the declaration made under Section 10.03 of the Competition and Consumer Act 2010. The Act provides limited conditional exemptions from competition rules that would otherwise prevent restrictive trade practices, allowing international liner shipping companies to form agreements and seek registration of such agreements under Division 6, Part X of the Act. The Act's application is national in scope and applies to any designated shipper body that represents the interests of Australian shippers. The Instrument does not contain any stated exclusions, exemptions or thresholds. The application of the Act extends through subordinate instruments, such as the Instrument, which declare associations as designated shipper bodies.

Key Provisions

The Competition and Consumer (Designated Shipper Bodies) Amendment Declaration 2019 amends the Competition and Consumer (Designated Shipper Bodies) Declaration 2018 to designate the Australian Peak Shippers Association as a designated inwards peak shipper body for the purposes of Part X of the Competition and Consumer Act 2010 (the Act). This amendment is pursuant to Section 10.03 of the Act, which allows the Minister for Infrastructure, Transport and Regional Development to declare an association as a designated shipper body if they believe it represents the interests of Australian shippers in relation to outwards or inwards liner cargo shipping services. Section 10.41 of the Act further mandates that parties to a registered conference agreement must engage in negotiations with the relevant designated shipper body whenever reasonably requested. The Act imposes specific obligations on parties to a registered conference agreement. Under Section 10.29, these parties must participate in negotiations with the designated peak shipper body or, in the absence of such a body, with the designated secondary shipper body nominated by the Registrar. The negotiations must cover negotiable shipping arrangements and any provisions of the agreement affecting those arrangements. Section 10.41 further requires that the parties consider the matters raised and representations made by the shipper body during these negotiations. Failure to comply with the obligations set out in the Act may have legal consequences. Although the Instrument itself does not specify particular offences or penalties, breaches of the Act could lead to legal actions or consequences under the broader provisions of the Competition and Consumer Act 2010. Penalties for breaches of the Act can include fines and imprisonment, with the exact penalties depending on the nature and severity of the breach. The Act also allows for civil remedies, including compensation for damages suffered as a result of the breach.

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Area of Law
Competition Law
Instrument
Legislative Instrument
Concepts
Definitions & Interpretation
Regulatory Standards
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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.