Nov 24, 2017

Govt. goes all out to break shipping sector monopoly

Several leading shipping companies are controlling Sri Lanka’s shipping services creating a monopoly and taking over the control of small shipping agency houses which leads to cartelization.

They pressurized small shipping agency houses to protest against the 2018 Enterprise Sri Lanka budget proposal to liberlise shipping service in order to continue their practice of monopoly and cartelisation, 

The government will take all necessary action to prevent cartelisation, and monopoly within the trade at present.

A few shipping agency houses has the monopoly power to control the freight rates and they can pressurise to reduce tariff rates for their benefit

These companies could fix freight rates to the exporters of Sri Lanka and prevent competition,

Cartelisation and anti-competitive practice is continuing in the industry and it is not favourable for the Sri Lankan exporter as they would not get the best possible and competitive freight rates in the industry for their exports.

Competition and fair practice of shipping activities in the industry will benefit the Sri Lankan exporter to obtain competitive and fair freight rates while the competition is essential among all shipping lines in order to secure cargo for their individual shipping company.