Are there antitrust ramifications to belonging to Shippers Associations?
In general, no. The Department of Justice has clearly stated that Shippers’ Associations do not have an unreasonable exposure to the antitrust laws. In fact, the Department has been so clear on this issue that it has discouraged Shippers’ Associations from seeking a business review letter. Basically, a Shippers’ Association that has an independent management structure to handle day-to-day operations and maintain the confidentiality of sensitive competitive business information of association members will provide adequate safeguards against a violation of the antitrust laws. The Department of Justice has established “safe harbor” guidelines. If the association buys less than 35% of the total carriage supplied on each port (or city) pair and if transportation costs constitute less than 20% of the delivered price of the product, the Association will not be challenged by the Department of Justice. However, any Shippers’ Association, as with any other business enterprise, should undertake p
Related Questions
- Are Shippers Associations required to obtain a business review letter or other form of antitrust clearance before commencing operations?
- What will happen to the assets of the current associations when they amalgamate and are there any ramifications for the clubs?
- Are there antitrust ramifications to belonging to Shippers Associations?
