Commerce Act 1986

Restrictive trade practices - Exceptions to Part 2

44B: Further exception in relation to international liner shipping services (price fixing in relation to space on ship)

You could also call this:

"Working together on international ship services: exempt from some rules when sharing space and setting prices"

Illustration for Commerce Act 1986

If you are working with others to provide an international liner shipping service, you might be exempt from some rules. You and the other people you are working with must be supplying this service together. This co-operation must improve the service for the people whose goods are being carried.

When you work together, you might agree on prices for space on a ship. You are exempt from the rules if you are exchanging, selling, hiring, or leasing space on a ship with the other people you are working with. This must be done to help your co-operation work better.

There are some exceptions to who is considered a party to your agreement. If someone is only a party because of section 30B(a), they are not included. In this case, a cartel provision is a provision in a contract, arrangement, or understanding that has to do with a cartel.

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44A: Exceptions in relation to international liner shipping services, or

"Some rules don't apply to people working together to provide international shipping services"


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Part 2Restrictive trade practices
Exceptions to Part 2

44BFurther exception in relation to international liner shipping services (price fixing in relation to space on ship)

  1. Nothing in section 30(1)(a) applies to a person in relation to a cartel provision that has the effect, or likely effect, of price fixing if, at the time of entering into or arriving at the contract, arrangement, or understanding that contains the provision, the circumstances in subsection (3) apply.

  2. Nothing in section 30(1)(b) applies to a person in relation to a cartel provision that has the effect, or likely effect, of price fixing if, at the time of giving effect to the provision, the circumstances in subsection (3) apply.

  3. The circumstances are that—

  4. the person and all other parties to the contract, arrangement, or understanding that contains the cartel provision are supplying an international liner shipping service in co-operation with each other; and
    1. the co-operation improves the service supplied to owners or consignors of goods carried at sea; and
      1. the provision relates to the exchange, sale, hire, or lease (including the sublease) of space on a ship between the person and 1 or more parties to the contract, arrangement, or understanding; and
        1. the exchange, sale, hire, or lease (including the sublease) is carried out for the purposes of the co-operation.
          1. For the purposes of subsection (3)(a), parties to the contract, arrangement, or understanding excludes persons who are parties only because section 30B(a) applies.

          2. In this section, cartel provision means a cartel provision in a contract, arrangement, or understanding.

          Notes
          • Section 44B: inserted, on , by section 10 of the Commerce (Cartels and Other Matters) Amendment Act 2017 (2017 No 40).
          • Section 44B(1): amended, on , by section 8(1) of the Commerce (Criminalisation of Cartels) Amendment Act 2019 (2019 No 9).
          • Section 44B(2): amended, on , by section 8(2) of the Commerce (Criminalisation of Cartels) Amendment Act 2019 (2019 No 9).
          • Section 44B(5): inserted, on , by section 19 of the Commerce Amendment Act 2022 (2022 No 11).