AUSTRALIA’S liner trades operate under a unique legislative framework that sets it apart from virtually every other industry in the country. Part X of the Competition and Consumer Act 2010 (Cth) provides a conditional exemption from key provisions of competition law for international liner cargo shipping, but the exemption comes with obligations, oversight and limits that operators must understand.
Part X creates a structured regime under which liner shipping conferences and agreements can operate without breaching the cartel and anti-competitive conduct prohibitions that would otherwise apply under Australian competition law. The rationale is longstanding: liner shipping is an inherently global industry, and the international coordination of schedules, capacity, and sometimes freight rates has historically been treated as a commercial necessity rather than a market distortion.
The exemption reflects Australia's recognition that liner trades require a degree of cooperation (particularly on service coverage to remote or low-volume ports) that pure competition policy might otherwise prohibit or chill.
Under Part X, liner shipping operators may register conference agreements and freight rate agreements with the Registrar of Liner Shipping. Once finally registered, parties to those agreements receive partial and conditional exemptions from the cartel conduct prohibitions and related provisions in Part IV of the Act.
The timing of these applications can take up to four months. Critically, there is a 30-day waiting period after the agreement has been approved. The protection only extends to the agreement registered, any variations are considered outside the scope of protection and must also be filed for protection.
The Australian Competition and Consumer Commission (ACCC) plays a central oversight role. Registered agreements are publicly available, providing transparency to shippers and the broader market. The ACCC (should be) monitoring the conduct of parties to registered agreements and has powers to investigate, report, and recommend action where conduct is deemed contrary to the public interest.
The Registrar of Liner Shipping may also refer agreements to the ACCC for review for compliance. The minister also retains reserve powers under Part X to revoke registration or impose conditions where an agreement is found to be operating against the public interest (a provision that underscores that the exemption is conditional, not unconditional).
A distinctive feature of Part X is its emphasis on shipper engagement. Under s 10.41, parties to a registered conference agreement are required to negotiate with, and provide information to, designated shipper bodies nominated for the purpose. The shipper body consultation obligation is a condition of the exemption regime, not a discretionary process.
Part X does not provide blanket immunity. Conduct that goes beyond the scope of a registered agreement (including unregistered variations) IV, or that involves parties who are not registered, remains subject to full competition law scrutiny. Predatory pricing, abuse of market power, and exclusionary conduct are not protected.
For carriers, freight forwarders, and shippers engaged in Australia's liner trades, Part X remains the governing framework for assessing the legality of cooperative arrangements. Ensuring that relevant agreements are properly registered, that conduct stays within registered scope, and that shipper consultation obligations are met is not merely good practice, it is the price of the exemption.
This article is for general informational purposes and does not constitute legal advice. Operators should seek specialist competition law counsel for advice specific to their arrangements.