News / UK forwarders welcome CMA axe for CBER – but it's not a done deal, yet

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UK forwarders have welcomed news that the country’s competition regulator is expected to follow the lead of its EU counterpart and allow the liner shipping Consortia Block Exemption Regulation to lapse when expires on 24 April next year.

The CBER was part of vast tranche of EU laws retained in UK law following Brexit.

On Friday, the UK Competition and Markets Authority (CMA) said that, following industry consultation, it “no longer proposes to recommend replacement of the retained CBER”.

British International Freight Association director general Steve Parker said: “The decision follows October’s news that the EC would not extend the CBER and, if it becomes a final decision, will be a sensible conclusion to the container market public consultation conducted by the CMA since the start of this year.

“When the CMA announced the review in January, BIFA expressed its surprise that the authority appeared to issue a provisional position which suggested the extension of a potentially modified CBER into UK legislation. So, we are pleased that the CMA has effectively reversed that decision and reached the same conclusion as the European Commission.”

However, the CMA also said it was seeking “feedback on the provisional decision before it reaches a final decision” due on 15 December, and which Mr Parker suggested could be subject to change if shipping lobbyists in London manage to convince UK secretary of state for business and trade Kemi Badenoch.

Mr Parker said: “We note that this is a two-stage review and the CMA is looking for further feedback on this provisional recommendation. There is no room for complacency. The shipping lines have hit out against the EC judgement and we understand they have been lobbying in London for the UK to retain some form of CBER.

“Given the possibility that the shipping lines will make new submissions to the CMA, BIFA will be working with our members to provide further argument that supports the decision to let the CBER lapse,” he added.