Conference Lines

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A Liner Conference can be defined as "a group of two or more vessel operating carriers which provide internationa liner services for the carriage of cargo on a particular route or routes within specific geographical limits and which has an agreement or arrangement within the framework of which they operate under uniform or common freight rates and any other agreed conditions with respect to the provisions of the liner services".

There are two types of shipping conferences, namely the Open Conferences and the Closed Conferences.

Open Conferences

All conferences operating to and from the United States are "open conferences". An open conference practically has to accept any shipping lines that applies for membership in accordance to with the United States legislation. The interpretation of US Anti-Trust Laws in the context of shipping conference forms the basis of structure "open" conferences.

Closed Conferences

Most European based shipping conferences are "closed" conferences. A closed conference admit new members at the discretion of existing members. A closed conference regulates the participation of each member in the trade via negotiations.

Thus, a closed conference has a greater ability to prevent costly over-tonnaging.

Common Features of Conference Liner Services
  1. Uniform tariff rates and terms and conditions.
  2. Control of supply of shipping space through regulation of trade participation of each member such as sailings, tonnages and port restrictions.
  3. Loyalty arrangements with shippers such as contractual discounts, deferred rebates and service contracts.

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